Despite the ongoing controversy over the environmental impacts of calcined petroleum coke, China is still considered to be a major supplier of the commodity. The country's calcining capacity has increased significantly over the last several years. This has helped to maintain the global demand for calcined coke at current levels. However, the recent increase in prices has led to increased concerns over the sustainability of China's calcined coke production.
Increasing demand for metals and aluminium products will drive the global calcined petroleum coke market in the forecast period. The global market is projected to rise at a CAGR of 5.9% during the period between 2022 and 2029. The major driving factors for the market are the increasing population, increased construction spending, and technological innovations.
Increased global demand for heavy oil products is also a driving factor. Developing economies are expected to drive the market due to increased construction and infrastructure activities. The market is expected to reach $11.2 billion by 2029. The global calcined petroleum coke market is segmented based on grade, end use, and region. The global market for calcined petroleum coke is expected to reach $11.2 billion by 2029.
Among the top five players, Oxbow and Chicago Carbon hold a significant share of the calcined petroleum coke market. They are the largest petcoke vendors in the world. They have three plants in the U.S. and one in Argentina. They are also a refinery byproducts marketer. They sell petroleum coke, sulfur and coal into markets.
They also trade in bauxite, gypsum, and other carbon products. They have a sales staff of about a thousand people around the world. Their annual revenue is about two billion dollars. They sell petroleum coke to a number of markets, including the primary aluminum industry, the steel industry, cathodic protection, and induction furnaces.
A new report from IndustryARC indicates that the calcined petroleum coke market in China has suffered because of environmental restrictions. Oxbow and Chicago Carbon had been using a calciner that had been out of service since 2002. During that time, the Clean Air Act passed. But the plant has not made any modifications to comply with the law.
Despite its relatively low cost, calcined petroleum coke is a preferred alternative to natural gas in the energy sector. Calcined petcoke, a byproduct of petroleum, is highly carbonated and has a high heating value. It is used in the production of carbon anodes in aluminum smelting. It is also used to make electrodes for the production of steel.
In terms of production, China is the world's largest producer of anode-grade coke. In fact, the country produces more than 30 million metric tons of petroleum coke each year. However, its aluminum smelting sector has been affected by the recent COVID-19 pandemic. Until the aluminum industry recovers, the global demand for aluminum is likely to continue to be dampened.
China's aluminum smelting industry is expected to recover from the COVID-19 pandemic and is expected to increase annualized production by 1.8 million metric tons in the second half of 2020. This is expected to result in strong growth opportunities for the petroleum coke market.
Earlier in October, there was a sharp increase in the price of calcined petroleum coke in China. Prices in Shandong and North-East China were increased by USD 60 and 50/Mt, respectively. This came after the country's total petroleum coke imports had increased by 46% year on year.
The main market is the domestic market. This market had traded well as a whole. Some second-tier traders were also not able to accept the new price. Hence, they tried to put out an increase. The price increase was not enough to motivate the steel makers to buy more.
The calciners had reduced production as of mid-September because of high GPC costs. This has pushed the overall calcined coke demand down.
A Chinese government intervention was aimed at stabilising the price of coal. However, it has had a very negative effect on the economy. It has caused economic activity to slow down. It has also led to a decline in oil and gas revenues. The oil and gas revenues are expected to decline by 50%-85% in 2020.
Despite the halt in production activities, the market for calcined petroleum coke in the UAE has witnessed a healthy growth. The demand for this material has been surging in the country's end-user industries such as aluminum, cement, steel, and power generation. However, stringent government regulations and internal factors are posing threats to the growth of the industry.
Nevertheless, the market is expected to grow at a considerable rate during the forecast period. As per the report, the overall market for calcined petroleum coke is projected to reach an estimated Multimillion USD by 2028. It is expected to grow at an estimated 3.2% CAGR between the years 2023 and 2028.
The report also presents the competitive landscape of the industry. It offers a detailed analysis of the global and regional market, key players, and their strategies. It also provides information on the growth trends and market forecasts. It also includes details about the restrictions, regulations, and opportunities in the industry.
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