The petcoke or calcined oil coke is the by-product of refinery that's been heated and pressed into fuel. The carbon-rich solid can be used to generate energy in the steel and other industries. Aluminium is a large consumer of the calcined oil coke because it is used for anodes during the aluminium melting process. With infrastructure development, urbanization and industrialization in emerging economies, the demand for steel is increasing globally which will also boost the demand for calcined petroleum coke.
The global calcined petroleum coke market is expected to grow at a CAGR of 4.6% over the forecast period, which stretches from 2020 to 2025. The use of calcined oil coke as needle coke or anode grade in the aluminium and steel industries is the main driver of growth. This market will grow as well due to an increase in demand from automobiles, construction, and expanding manufacturing industries throughout Asia-Pacific.
Over the past three months prices for calcined petroleum coal have significantly increased. Chinese rates are 20% Ex Shanghai, and Indians prices 15% CFR Visakhapatnam. The sharp increase in price was due to an impending coal shortage that was present in China and South Asia throughout the fourth quarter of last year, forcing industries such as cement and metal to use calcined petroleum coke instead.
A decline in the price for calcined coke was observed in Asian markets in the first quarter, 2023. This is primarily due to the subdued demand from the construction industry. The Chinese Lunar New Year holidays also led to temporary shutdowns of factories and offices, which further reduced demand. South Korea imports calcined oil coke primarily from China. Therefore, the price of this commodity also decreased in South Korea when China's prices dropped.
North American producers are not producing enough calcined coke, which is leading to shortages. The US also has a persistent labour shortage. A lack of supply coupled with rising freight rates are pushing the calcined oil coke price in this region up. To overcome these obstacles, certain companies began investing in calcining capabilities, increasing the supply of petcoke.
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