Petroleum coke is also known as petcoke and is a final solid product obtained from oil refining. It is available in two forms: fuel grade and calcined grade. Power generation, construction, and metal industry are some of the major end-user of the petroleum coke. It is also used in the production of titanium and fertilizers.
Global petroleum coke (petcoke) market is estimated to account for around US$ 22,349.1 million in terms of value in the year 2019 and it predicted to grow at a CAGR of 8.5% during the forecast period (2020-2027).
Rising demand for titanium dioxide from paints and colorings and fertilizer industries is projected to propel the market growth of petcoke. Calcined coke is widely used in the production of titanium dioxide. Moreover, the growing application of needle calcinated coke in battery electrodes are again contributing to the market growth of the petroleum coke. Increasing population around the globe is creating demand electricity which is further projected to favor the market growth.
Growth in the automobile industry which is driving demand for steel products is projected to provide enormous opportunities to the the market of petcoke. Moreover, the expansion of the railway and transportation industry is also creating demand for steel which in turn is augmenting the market growth of the petcoke. The rise in the various manufacturing industries around the globe is another major factor propelling the market growth of the petcoke.
A highly fluctuating price of fuel due to the political scenario is expected to hinder the market growth of petcoke. Petcoke is a by-product of crude oil, thus any changes in the price of crude oil affect the overall price of petcoke. This is expected to restrict the market growth of the petcoke.
On the basis of region, Asia Pacific region dominated the global petroleum coke (petcoke) market in 2019 with a 35.6% of market share in terms of value, followed by Europe and North America respectively.
On the basis of product type, fuel grade coke segment dominated the global petroleum coke (petcoke) market in 2019 with a 75.2% of market share in terms of value.
The growing popularity of calcined petroleum coke among end-user as it has low emission properties is expected to foster the market growth of the petcoke. Moreover, increasing investment in the development of refineries and metal manufacturing industries across developing regions is also contributing to the market growth of petcoke. The growing trend of using coke as a substitute for coal in boiler and furnace is further projected to accelerate the market growth of petcoke.
Global Petroleum Coke (petcoke) Market - Impact of Coronavirus (Covid-19) Pandemic
Coronavirus is expected to have a significant impact on infrastructure sector. Infrastructure are expected to vulnerable to delays due to supply chain disruptions and unavailability or shortage of workers. Governments across the world are devoting resources to address immediate needs, which in turn has made infrastructure projects take a back seat. This is expected to decrease the demand for petroleum coke from infrastructure sector. The coronavirus is expected to have a short term impact on petcoke market. According to Coherent Market Insights, petcoke market is expected to grow at a lower CAGR between 2020 and 2021.
Few Recent Developments
In December 2017, Indian Oil Corp the biggest oil company has invested Rs 20,000-crore in setting up a coke gasification project at its Paradip refinery in Odisha to convert the lowest-cost fossil fuel into gas that can be used to generate power or make petrochemicals.