Coal Tar Pitch (CTP) Market Trends

Growth Drivers

Rising Need for Aluminium from The Growing Automobile Industry

According to the statistics by the International Organization of Motor Vehicle Manufacturers (OICA), total vehicle produced in the world increased from 77.6 million units in the year 2010 to 95.6 million units in the year 2018.

The demand for automobiles has seen an exponential growth over the years on the back of rising household disposable income along with the increasing need amongst individuals for various means of transport. But, over the years, owing to high vehicular emission, stringent norms have been developed by nations across the globe as a measure to reduce the pollution from vehicles on road. One such important measures taken by the government of nations worldwide is the reduction of the overall curb weight of the vehicle, for which, there is an upsurge in demand for lightweight metals, such as aluminium by the vehicle manufacturers. The steady growth observed in the automobile industry and the increasing production of automobiles around the world is thereby anticipated to drive the demand for aluminium, which in turn will require metal manufacturers to produce aluminium in greater quantity, thereby benefitting the growth of the global coal tar pitch market.

Growing Demand for CTP in the Paints and Coatings Industry

CTP is widely used as a base in the manufacturing of paints and coatings, the market of which is anticipated to grow at a CAGR of 5.3% over the forecast period 2019-2027. This can be attributed to the growing building and construction industry, followed by the expanding automotive and aerospace industry, where paints and coatings are used extensively. Such a factor is anticipated to drive the growth of the global CTP market.

Increasing Demand for CTP for the Manufacturing of Graphite Electrodes in Electric Arc Furnace

Several nations around the world have imposed stringent norms to regulate the process of melting materials, for instance, furnaces that are used in the production of metals, such as steel. As such, manufacturers using furnaces worldwide have shifted to electric arc furnace (EAF), which uses graphite electrodes to melt the materials provided inside the furnace. Graphite electrodes are made by the utilization of a binder-grade coal tar pitch and calcined needle coke, followed by impregnation-grade CTP. The upsurge in demand for graphite electrodes worldwide and the rising consumption of CTPs for the manufacturing of graphite electrodes is thereby anticipated to drive the growth of the global coal tar pitch market in the upcoming years.

Challenges

Concerns for GHG Emissions

Rising concern amongst nations worldwide for the high emissions of greenhouse gases (GHGs) obtained during the process of manufacturing of CTP along with the health risks associated when exposed to CTP are some of the factors anticipated to hamper the growth of the global coal tar pitch market. Moreover, increasing research for secondary aluminium, which doesn’t require the utilization of coal tar pitch, might impact negatively towards the consumption of CTPs. Such a factor is also anticipated to act as a key restraint factor towards the growth of the global CTG market in the upcoming years.