The calcined petroleum coke industry is an energy-intensive sector that utilizes crude oil distillates and residues. The demand for the product is driven by rapid steel production in developing economies of Middle East & Africa and Asia Pacific, industrialization and urbanization. The market is also growing due to the increased demand for petcoke fuel in cement kilns, power plants and other industries. The price fluctuations of crude oils and derivatives are a major factor in the high prices of petcoke.
In the period 2023 to 2020, it is anticipated that global demand for calcined oil coke will grow by less than six percent. CPC can be produced by petroleum refinery processes. This product is utilized in many industries such as aluminum smelting and steel production. It's also used to make paints and coatings, titanium dioxide bricks, fertilizers, and more. Construction, mining, and manufacturing are also driving the demand for calcined petrol coke.
A large number of CPC-related projects have been undertaken by different market players in recent years to boost their own production capabilities. In response to an increase in demand for CPC from the industry, many major players have invested heavily into building refineries or calcining units. Oman has opened its $150-million first CPC facility in Sohar Freezone. The Sultanate of Oman is one of Opec's largest crude oil exporters.
Another significant factor driving the growth of the CPC industry is the rising steel and aluminum production in various regions. CPC, with its low content of sulfur and carbon, is preferred by the smelters for use as an energy alternative. Moreover, the smelters prefer to use multiple CPC suppliers to mitigate supply risks and optimize economics. A CPC mixing system is relatively inexpensive and can quickly pay for its initial investment.
Asia Pacific holds the biggest share on the green and calciumed petroleum coke markets in 2019. This was up to 40% in 2019, mainly due the increased development of infrastructure in countries like India and China. The growing construction of buildings, roads, bridges, and dams is driven by socioeconomic changes, infrastructural development, and increasing per capita income of the population in these countries. India's government is expected to boost residential construction through initiatives such as "100 Smart Cities" and "Housing for All in 2022". Singapore, according to the Australian Trade and Investment Commission spends about S$2 Billion per month in public infrastructure. In the future, analysts predict that Asia's calcined oil coke industry will grow. In the industry of calcined coke, competition is driven by a number of factors such as product launches, R&D, R&D investment, contracts, acquisitions and other agreements. These developments have led to the leading market players concentrating on enhancing their product portfolios.
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