February 24, 2024
Petroleum Coke (Petcoke) Market

Projected Growth In Petroleum Production To Boost The Growth Of Petroleum Coke Market

The global Petroleum Coke (Petcoke) Market is estimated to be valued at US$ 28.35 Mn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Petroleum coke or petcoke is a by-product obtained from oil refining and coal gasification processes. It is a dense and carbon-rich solid material that resembles coal. Petroleum coke is made up of carbon and has less sulfur content than coal. It is used as a cost-effective alternative to coal in the production of cement, electricity, and steel. Due to its bulk nature and energy content, it serves as an ideal replacement for coal in applications like power generation and cement manufacturing.

Market key trends:

One of the key trends in the petroleum coke market is the rising demand from the aluminum industry. Petroleum coke is used as a fuel and reducing agent in the aluminum smelting process. Expanding aluminum production around the world is driving the consumption of petcoke. According to the Intergovernmental Forum on Chemical Safety, global aluminum production increased from 57 million tons in 2010 to 65 million tons in 2020 and is expected to increase further in the coming years. This rising production of aluminum will propel the demand for petroleum coke in the aluminum industry. Another trend is the growing focus on lowering sulfur emissions from petcoke. Regulations limiting sulfur in petcoke are encouraging producers and end-users to adopt lower sulfur alternatives or install emission control technologies.

Porter’s Analysis

Threat of new entrants: The petroleum coke industry requires high capital investments for establishing refineries and production plants, thereby acting as a barrier for new entrants.

Bargaining power of buyers: The presence of numerous buyers in the fragmented petroleum coke industry increases their bargaining power against manufacturers.

Bargaining power of suppliers: A few petroleum companies globally control the supply of crude oil, giving them significant influence over petroleum coke prices.

Threat of new substitutes: Alternatives like coal and renewable energy sources pose a moderate threat to the demand of petroleum coke.

Competitive rivalry: Stable production levels amongst key manufacturers have led to intense competition in the market.

Key Takeaways

The Global Petroleum Coke (Petcoke) Market Share is expected to witness high growth, exhibiting CAGR of 5.5% over the forecast period, due to increasing demand from the aluminum and cement industries. Petcoke is an economical fuel source used extensively in manufacturing industries across developing nations.

The Asia Pacific region dominated the global petroleum coke market in 2023, owing to the large presence of aluminum smelters and cement plants in China and India. Moreover, growth of manufacturing sectors across Southeast Asian countries is also driving the consumption of petcoke.

Key players operating in the petroleum coke (petcoke) market are BP Plc, Chevron Corporation, Essar Oil Ltd., ExxonMobil Corporation, HPCL – Mittal Energy Limited, Indian Oil Corporation Limited, Reliance Industries Limited, Royal Dutch Shell Plc, Saudi Arabian Oil Co., and Valero Energy Corporation. These companies are focusing on capacity expansion plans and long-term supply agreements with end-use industries to strengthen their foothold in the market.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it