Petroleum coke, or petcoke, is a solid carbon material that is derived from oil refining and serves as a crucialraw materialfeedstock in the fertilizer manufacturing industry. As a refinery by-product, petcoke is cost-efficient to produce and possesses a high heating value, thus making it suitable to act as a fuel and energy source in key industrial processes like fertilizer manufacturing. Petcoke is combusted at fertilizer plants to generate high temperatures necessary for reactions involved in producing commodities like ammonia, urea, and other nitrogen fertilizers. The surging global demand for fertilizers to guarantee food security amid a rising population has led to exponential growth of the fertilizer manufacturing industry in the recent decade. Countries like China, India are relentlessly expanding their fertilizer production capacities to meet domestic agricultural needs as well as for exports. This substantial growth of the fertilizer industry worldwide has propelled parallel increase in petcoke consumption over the past years.
The global Petroleum Coke (Petcoke) Market is estimated to be valued at US$ 32.66 Bn in 2024 and is expected to exhibit a CAGR of 14%over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving the petcoke market growth is its increasing utilization as an alternative to coal in the cement industry. Cement kilns require high temperatures in the range of 1450 to 1500 degree Celsius for pyroprocessing of raw materials during cement production. Petcoke possesses nearly double the heating value of coal and can hit higher temperatures, thus making it a viable energy source for cement production. Moreover, stringent environmental policies are compelling cement players worldwide to replace coal with cleaner-burning petcoke to reduce emission levels from plants. Governments across countries like India, China, Vietnam are strongly endorsing the shift from coal to petcoke in the cement sector. These factors are significantly contributing towards elevating petcoke consumption from the cement industry.
Porter’s Analysis
Threat of new entrants: The petroleum coke industry requires significant capital investment to build processing plants and acquire feedstock supply, which acts as a barrier for new companies.
Bargaining power of buyers: The bargaining power of buyers is moderate as petcoke is used as a cost-effective fuel in industries like cement manufacturing and aluminum smelting. Buyers can negotiate on pricing and quality standards.
Bargaining power of suppliers: A few large companies dominate global crude oil production, giving them significant influence over petcoke prices. However, availability of alternative fuels provides some flexibility to buyers.
Threat of new substitutes: Alternate fuels like coal and natural gas pose competition, but petcoke has advantages of low cost and wide availability. Ongoing research to commercialize advanced biofuels could impact petcoke demand in long run.
Competitive rivalry: Major players compete on factors likeconsistent supply, product quality, and client relationships. Industry players focus on backward integration and long-term supply contracts to gain competitive edge.
Key Takeaways
The Global Petroleum Coke Market Size is expected to witness high growth over the forecast period supported by rising demand from aluminum and cement industries.
Regional analysis:
Asia Pacific accounts for the largest share of global petcoke consumption and will continue dominating due to strong aluminum and cement industries in China and India. Countries like GCC and USA also contribute significantly to global petcoke production.
Key players:
Key players operating in the petroleum coke market are Alma Laser, Hologic, Inc. (Cynosure), Abbvie (Allergan), Solta Medical, Candela Medical, Merz Pharma GMBH, Revance Therapeutics Inc., Lumenis, Galderma Pharmaceuticals S.A., and Johnson & Johnson Services, Inc., among others. Companies are focusing on expansion in high growth regions and long term supply agreements.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it