Petroleum Coke Market Trends

Growth Drivers

• Growing development of automobiles to boost the production of steel - The production of automobiles has risen significantly all across the globe owing to rising demand for personal vehicles, economic changes, and more. According to the prediction of ACEA, the production of automobiles in 2022 rose to 85.4 million units which indicates a rise of about 5.7% in contrast to the year 2021.
  
  Hence, this rise in the production of automobiles is expected to dominate the growth in the manufacturing of steel since it is considered to be a versatile material owing to its strong and durable quality making it ideal to be used in the automotive industry. It is mostly utilized in the body of vehicles and chassis, along with the production of engine parts. Therefore, the petroleum coke market is set to rise in steel production as it has an excellent electrical and thermal conductivity which is further used in the steel-making process as a heat transfer medium.
• Rising enhancement of refinery technology - With the growing advancement in refining processes technology for petroleum coke production, the product quality has been improved notably by further additionally reducing environmental impacts. This is owing to the fact that improved refining techniques allow the manufacturing of petroleum coke with small sulfur content, hence allowing the industry to meet stricter environmental regulations. This is why, the petroleum coke market is projected to experience growth in its revenue.
• Surge in the use of petcoke in electricity generation - The electricity generation has increased to over 29,000 terawatt-hours in 2022 up from 12,000 terawatt-hours in 1990 across the globe. This could be on account of rising industrialization and the shift of people towards cities. Consequently, the petroleum coke market demand is also poised to surge in the coming years as they are estimated to be a powerful source of energy owing to the composition of the fuel. 

Challenges

• Rising adverse effects on environment and health - Petroleum coke is anticipated to have various harmful effects on the environment as well as humans.
  
  The quantity of sulphur in this solution is high which makes it potent to adverse effects. Moreover, various renewable sources of energy including natural gas and hydrogen are growing in demand owing to rising awareness among people
• Launch of strict government regulations
• Growing price of raw materials - The price of raw materials including fuel is growing on account of factors such as scarcity, border dispute, and more.