Calcined Petroleum Coke Market Size, Share, Growth Analysis, By Type(Anode Grade, Needle Grade), By End Use(Carburizing & Recarburizing Electric Arc & Induction Furnaces, Others), By Region - Industry Forecast 2024-2031

Calcined Petroleum Coke Market size was valued at USD 39.15 billion in 2019 and is poised to grow from USD 51.66 billion in 2023 to USD 75.3 billion by 2031, growing at a CAGR of 6.9% in the forecast period (2024-2031).

Green or raw petroleum coke is produced by delaying the coking of leftovers received from crude oil distillation units of oil refineries. Calcined Petroleum Coke is the name for the aforementioned Green or Raw Petroleum Coke that has been heated to a temperature of 12000 to 13000 degrees Celsius. Calcined petroleum coke is widely used in the production of various carbon and graphite products, as well as for the melting of alumina in the aluminum industry, as a carbon raiser in the production of special high carbon steel in foundries, as a conductive backfill in ground electrode stations, and for other purposes.

The rise in demand for petroleum coke in the steel industry, expansion in the cement and power generation sectors, expansion in the supply of heavy oils globally, and supportive government initiatives regarding a sustainable and green environment are the main factors propelling the global calcined petroleum coke market growth. For example, India, which accounts for approximately 7% of the world's installed capacity, is the second-largest cement manufacturer in the world. In FY22, India's total capacity for cement manufacturing was close to 545 million tonnes (MT). 98 percent of the overall capacity is held by the private sector, and the remaining 2 percent by the governmental sector. About 70% of all cement produced in India is produced by the top 20 businesses. India has extensive limestone reserves of excellent quality and quantity, which offers the cement sector tremendous expansion potential. Because of the rising demand for various sectors, such as housing, commercial development, and industrial construction, the demand for cement is predicted to reach 419.92 MT per annum (MTPA) by FY 27. In FY21, the total amount of cement produced was 294.4 million tonnes (MT), down from 329 million tonnes (MT) in FY20.

The primary reason for the growth of the global calcined petroleum coke market is an increase in construction spending coupled with a rise in the demand for pre-engineered buildings (PEB), particularly in the growing economies of Asia Pacific, including China, India, Japan, and Thailand among others. Over the projected period, economic growth and population growth in these economies are anticipated to have a further positive impact on the development of the global calcined petroleum coke market.

Nearly every business has been severely impacted by the COVID-19 epidemic, but the worldwide oil and gas sector may have taken the worst blow. Many oil and gas businesses have been forced by the virus's spread to scale back or stop their physical activities, which has had an impact on both upstream and downstream operations as well as output. Similar to the calcined petroleum coke, which was negatively impacted because it is a byproduct of petroleum and the oil and gas sector was not operating as it should. Lockdowns and instructions to stay at home caused a 10% drop in oil consumption in March and a 30% drop in April.

The International Energy Agency (IEA) predicts a 6-10% decline in demand in 2019 or a loss of 9.3 million barrels per day (bpd). Return to 2019 levels is not anticipated any time soon, even when limitations are relaxed and nations start to reopen. Demand fell by historic amounts as a result of COVID-19, and Saudi Arabia and Russia's pricing war led to a slump in crude oil prices. When the epidemic reached its height in Asia in early March, OPEC opened its taps, dumping cheap oil on the world. Despite a 28 million bpd decline in global demand, this persisted into April as OPEC raised output by 2.3 million bpd. The suspension of manufacturing is also anticipated to impede the global calcined petroleum coke market.

US Calcined Petroleum Coke Market is poised to grow at a sustainable CAGR for the next forecast year.