Coke Market - Forecasts from 2024 to 2029

The global coke market is projected to register a compound annual growth rate (CAGR) of 2.4% between 2024 and 2029.

The coke market is expected to grow significantly owing to multiple factors, such as the increasing demand for graphite electrodes in the steel sector, particularly in emerging nations. Needle Coke offers a lot of advantages, such as their strong demand in graphite batteries, low thermal expansion coefficient, high conductivity, and low porosity, which together are regarded as essential factors driving the market growth.  Another factor driving the market growth is the rising demand for graphite electrodes to power Electric-Arc Furnace (EAF) for steelmaking and new energy vehicles, supported by national industrial policies. The coke market's growth is influenced by several other key drivers as well.

The rising demand for steel production acts as a significant growth driver, which is imperative for the market mainly because of its essential role in the steelmaking process. The growing construction market is another driver. As the construction market grows, infrastructure projects, along with the automotive industries, also witness growth worldwide, thus driving the steel demand, which is an essential component of the coke market.

Not only this, but technological advancements are also playing an imperative role in propelling the coke market growth in collaboration with the growing research and development efforts that are leading to improvements in the coke manufacturing process. This results in the whole process being cost-effective and more efficient while also being environmentally sustainable.

GLOBAL COKE MARKET DRIVERS:

Fuel-grade coke is likely to be the fastest-growing type during the forecast period

Crude oil is the essential component of fuel-grade Coke or Pet Coke and is regarded as a carbon-rich solid product derived from oil refining. Fuel-grade coke is produced during the cooking process of crude oil, where high temperatures break down heavy hydrocarbons into lighter products, leaving behind solid carbon residue. The rising adoption of fuel-grade coke in various applications is expected to drive market growth.

Furthermore, several factors are responsible for driving fuel-grade coke’s growth. These usually revolve around its high calorific content, which makes fuel-grade coke an attractive choice for multiple applications, such as fuel production. In terms of impurity Removal, during oil refining, fuel-grade coke effectively removes impurities. This quality enhances its value in industrial processes.

This segment also plays an efficient role in the construction and power industries.. The growing power and construction industries are the largest and major consumers of fuel-grade coke, mainly because of their use in cement production and power generation, which highly contributes to the market's expansion.

The growing application of coke in the construction industry

Coke is regarded as a high-carbon product solely obtained through the destructive distillation of coal. In this regard, it has gained extreme prominence in multiple industries mainly because of its versatility and unique properties. Coke is being used in various industry processes mainly because of its primary uses, especially in the construction industry.

In the construction industries, coke has been acting as a reducing agent in smelting iron ore, which is essential for the production of steel. Steel, on the other hand, is another crucial material in modern construction, used extensively in building structures, bridges, and other infrastructure projects.

In the construction industry, another significant application of coke is in the production of cement. Coke is used as a fuel in cement kilns, where it helps to reduce the amount of coal required for the process. In this regard, it not only results in the reduction of the overall costs for cement production but also in minimizing the environmental impact of the processes that are involved in reducing greenhouse gas emissions. In addition to these direct applications, coke also plays a crucial role in the production of various chemicals used in construction. For example, ammonia gas recovered from coke ovens is used to manufacture ammonia salts, nitric acid, and agricultural fertilizers.

The global demand for coke is projected to grow at a compound annual growth rate (CAGR) of 2.4% during the forecast period, with the fastest growth observed in the pharmaceutical and food processing industries, respectively.

GLOBAL COKE MARKET - GEOGRAPHICAL OUTLOOK

Asia Pacific region to dominate the coke market during the forecast period.

The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries. India and China have about 35.5% of the world's population, thereby contributing to the global demand for Coke. The APAC region’s growing urbanization as well as its rapid industrialization is also acting as a driver. There is an increase in the demand for steel and other carbon-based products, thus together driving the growth of needle coke, especially, in the production of graphite electrodes which are essentials used in the process of steelmaking. The APAC regions have also witnessed a growing adoption of electric vehicles as well as renewable energy technologies, which are increasing the demand for lithium-ion batteries and fuel cells, which require needle coke as a key component. Furthermore, the presence of major needle coke producers and manufacturers in countries like Japan and South Korea further fuels the regional market growth.

Global Coke Market Key Developments:

• October 2020:  Chevron successfully purchased Noble Energy, which is regarded to be an independent company specializing in oil and natural gas production and exploration. This acquisition has allowed Chevron to access a valuable portfolio of proven reserves, cost-effectiveness, and promising undeveloped resources. The acquisition aligns with Chevron’s ongoing efforts to strengthen its energy assets, ensuring a robust and diversified reserve base that supports long-term growth and sustainability in the global energy sector.
• March 2023:  ExxonMobil celebrated the successful commencement of its Beaumont refinery expansion initiative. This project increased the refinery’s capacity by an impressive 250,000 barrels per day, solidifying its position as one of the most significant refining and petrochemical complexes along the U.S. Gulf Coast. The expansion reflects ExxonMobil’s commitment to meeting the region’s growing energy demands and enhancing production capabilities, contributing to the overall energy infrastructure in the United States.
• May 2021:  Shell Oil Company, a subsidiary of Royal Dutch Shell plc, finalized an agreement to sell its stake in Deer Park Refining Limited Partnership to its partner, Petroleos Mexicanos (Pemex). This transaction transformed the Deer Park facility in Texas into the first foreign refinery solely owned by Mexico’s state-run oil company.

The global coke market is segmented and analyzed as follows:

By Product Type

• Fuel Grade Coke
• Calcined Coke

By Application

• Steel Production
• Cement Production
• Aluminium Production
• Chemical Production
• Power Generation

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Rest of South America
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Rest of Europe
• Middle East and Africa
• Saudi Arabia
• UAE
• Rest of the Middle East and Africa
• Asia Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Rest of Asia-Pacific