Petroleum Coke Market Research Report –Forecast to 2030

Global Petroleum Coke (fuel-grade) market research report by Application ( Cement, Power Plant, Brick and Glass, Paper and Pulp, Foundries), By Region Forecast to 2030

ID: MRFR/CnM/5104-CR | October 2018 | Region: Global | 100 pages

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Petroleum Coke Market Overview


The CAGR for the petroleum coke industry is 3% for the time period that this report covers. The petroleum coke market value was USD 7902.5 million in 2020. It’s projected to be worth USD 26,970 million in 2030.


Petroleum coke is produced when crude oil is extracted and refined. Petroleum coke tends to be heavily used in the cement industry. The reason for this is because it’s flexible and has a high tensile point. The cement industry used up 44% of all of the petroleum coke that was produced in 2019.


COVID-19 analysis


COVID-19 is a dangerous virus. It has made some people very sick and has even resulted in a few deaths. What made the virus especially dangerous was the fact that some people who recovered suffered from long-term health problems like diabetes and shortness of breath. Others were reinfected by the virus a few months after they recovered.


Governments realized that COVID-19 could not be taken lightly. That’s why they sought to contain the spread of the virus through lockdowns and quarantines. These were short-lived since they didn’t work. In any case, the lockdowns and quarantines badly affected most businesses in almost all industries. The companies in the petroleum coke industry were no exception. They were forced to shut down because of COVID-19 and are only now beginning to recover.


The disruptions in the supply chain owing to travel restrictions led to irregular demand and supply ratios. Moreover, the closure of production units to curb the virus spread led to a shortage of products in the market for some period. 


Competitive landscape


The global petroleum coke industry is highly fragmented and competitive. There are a few reasons for this. The first is that the industry has a relatively high CAGR. The second is that the industry is fairly stable. The third is that the industry is lucrative. All of these factors are enticing and luring new companies of all shapes and sizes to enter the market every year. Large companies, especially, have an easygoing mainly because they have the large treasuries that are needed to support larger sums of initial investment money.


In any case, companies find that they can stay competitive only if they invest heavily in research and development. This allows them to develop newer and innovative products that are far superior to what the competition can develop and market. Companies find that they do more than just create a sustainable competitive advantage when they do substantial and quality research and development. They also extend their future horizons.


Companies can also find that they can merge with and acquire other companies. This allows them to increase the resource base which they need to do research and development. Thus these companies find that they can develop new products which will allow them to easily enter new markets and solidify their positions in existing markets. They can also expand their positions in existing markets.


Entering into strategic partnerships also allows companies to do the same thing that mergers and acquisitions allow them to do.


Valero Energy group is a major American player in the global petroleum coke industry. It has become an industry leader by investing heavily in research and development. This allowed it to develop a sustainable competitive advantage.


List of Companies



  • Indian Oil Corporation Ltd., - India

  • Nayara Energy Ltd. - India

  • Petrobras, - Indonesia

  • Royal Dutch Shell PLC, -the Netherlands

  • Exxon Mobil Corporation,- USA

  • Citgo Petroleum Corporation, - the USA

  • Marathon Petroleum Corporation, - the USA

  • Valero Energy Corp., - the USA

  • Motiva Enterprises LLC., - the USA

  • Phillips 66 Company.- USA


Market dynamics


Drivers


Growth in the steel industry is driving growth in the global petroleum coke industry. It’s used to make steel stronger, more durable, and last longer. It’s also been growth in the cement, power generation, and heavy oils industries. Government initiatives that are designed to make the environment greener and cleaner are also driving growth in the industry.


Opportunities


Companies in the global petroleum coke industry are responding by investing heavily in research and development. This is allowing them to develop a new generation of petroleum coke products with newer uses and applications.


Restraints


Many governments around the world have banned coal mining. This is expected to hold growth back in the global petroleum coke industry because it will make it harder to extract and process petroleum coke.


Challenges


Perhaps the greatest challenge that companies in the global petroleum coke industry face lie in continuing to produce petroleum coke with better applications and uses while keeping the price point in the affordable range for the global masses.


Technology analysis


ExxonMobil is a major American player in the global petroleum coke industry. It has become an industry leader by investing heavily in research and development. This has allowed it to develop a new generation of petroleum coke products that have more innovative uses and applications. Incidentally, it has also been able to sell these products at a much higher price point.


Segment overview


By technology


The global petroleum coke industry can be grouped into the following sub-segments based on technology:



  • Anode grade

  • Needle grade


Anode grade or raw pet coke consists mostly of carbon, hence its extremely low quality. This sub-segment currently accounts for 20% of the total petroleum coke market share. It’s used when making steel to stabilize it by balancing its overall carbon content.


Needle grade petroleum coke is of substantially higher quality. It has crystals that are in the shape of small needles. That’s why it’s used in making electrodes. These electrodes are used to manufacture steel. They’re (electrodes) are in high demand because they do an excellent job of conducting electricity. Needle grade petroleum coke is also used to make graphite electrodes which are used when making various types of furnaces.


By end-user


The global petroleum coke industry can be grouped into the following sub-segments based on end-user:



  • Carburizing and recarburizing

  • Electric arc and induction furnaces


Petroleum coke is used in carburizing and recarburizing furnaces to make sure that the carbon content in steel is in the appropriate range when manufacturing steel. Anode grade petroleum coke is used in this instance because it has more carbon.


By application


The global petroleum coke industry can be grouped into the following sub-segments based on application:



  • Electric arc furnaces

  • Induction furnaces


85% of petroleum coke manufactured is used in electric arc and induction furnaces. In this case, it’s the electrodes, and not the petroleum coke itself, that’s used to make various types of steel.


Regional analysis


The global petroleum coke industry can be grouped into the following regions:



  • Asia-Pacific

  • The European Union

  • The Middle East and North Africa

  • North America


The Asia-Pacific region is expected to see the largest petroleum coke market growth rates during the time period that this report covers. The national economies of most countries in this region are growing rapidly. This is fueling unprecedented demand in the power and cement industries. The nations of India, China, and Vietnam are seeing this occur on a large-scale basis. This, in turn, is driving extraordinary growth in the regional petroleum coke industry.


The Asia-Pacific region also had the largest petroleum coke market share for the time period that this report covers. There are many reasons for this. Some of these were covered in the previous paragraph. China uses petroleum coke heavily in power plants to generate the energy that powers the nation.


The cost of producing electrical energy is low throughout the European Union. There is a reason for this. It’s because most energy factories and plants in Europe use petroleum coke to operate. Petroleum coke is easy to find and mine throughout the European Union. It’s also much cheaper than traditional fuel sources like natural gas and coal.


The Middle Eastern and North African nations are investing massively in infrastructure projects. Since infrastructure projects use up large quantities of steel, this is driving growth up for petroleum coke. Crude oil companies in this region are setting up plants that can produce lots of petroleum coke of varying grades and qualities that can meet the immense demands for infrastructure in the region.


The North American region is expected to see a modest petroleum coke market growth rate. What accounts for this is the fact that the region has been a historic exporter of petroleum coke. 


Recent developments


November 2021: As it tries to expand its high-value chemicals business and realise its hydrogen goals, India's private sector RIL, the country's major petroleum coke manufacturer, will undertake a programme to move its gasification activities into a wholly-owned subsidiary. This coincides with the company's push toward renewable energy and reaching net-zero carbon emissions. The gasification project was established in the Jamnagar refinery in Gujarat's western province to create syngas to meet energy needs as refinery off-gases, which were then repurposed as feedstock for the refinery off-gas cracker, which aids in the synthesis of olefins. Hydrogen is also produced using syngas.

November 2021: The Sohar Freezone will host a'soft launch' of Oman's first petroleum coke calcining (CPC) facility. Sanvira Carbon FZC, which was founded with a USD 150 million investment, will assist refineries in the Sultanate of Oman add value to the large amounts of petroleum coke (petcoke) produced as a byproduct of the refining process. Petcoke, which has previously been exported as a low-value fuel, can be converted into calcined petroleum coke, which is commonly utilised as carbon anodes in aluminium smelters and other uses.

Report overview


The CAGR for the petroleum coke industry is 3%. The petroleum coke market value was USD 7902.5 million in 2020. It’s projected to be worth USD 26,970 million in 2027. Soon the market is going to see a boom in the growth as per the forecast. The growth of this market will accelerate higher in the upcoming years.



Report Scope:
Report Attribute/Metric Details
  Market Size   2030: Significant value
  CAGR   2019–2030: Substantial CAGR
  Base Year   2019
  Forecast Period   2020-2030
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Application and Region
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Indian Oil Corporation Ltd., Nayara Energy Ltd., Petrobras, Royal Dutch Shell PLC, Exxon Mobil Corporation, Citgo Petroleum Corporation, Marathon Petroleum Corporation, Valero Energy Corp., Motiva Enterprises LLC., Phillips 66 Company.
  Key Market Opportunities   Growing cement and power industries in emerging economies
  Key Market Drivers   Fuel grade coke dominated the market and is expected to witness rapid growth over the forecast period


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Frequently Asked Questions (FAQ) :

Petroleum coke is used in the fuel generation industry

The prominent players operating in the Petroleum Coke Market include

Petroleum Coke Market is predicted to grow at Significant through forecast period of 2020-2027.

The forecast period for Petroleum Coke Market research report is 2020-2027.