Calcined Anthracite Market - Forecasts from 2024 to 2029

The calcined anthracite market is expected to grow at a CAGR of 3.5% during the forecast period (2024-2029).

The main factor driving the calcined anthracite market is the demand from increased demand for steel as it is used in decarburizing in ladle and blast furnaces in steel mills. Steel is a material of high tensile strength and low cost, it is the most commonly manufactured material in the world. It is used in buildings, as concrete reinforcing rods, bridges, infrastructure, tools, ships, trains, cars, bicycles, machines, machinery parts, electrical appliances, furniture, and other types of equipment.

Anthracite is suitable as a carburizing agent in iron foundries for grey cast iron, cast steel, and in steel works. When used as the carburizing agent, anthracite is calcined at approx. 1,400°C and cleaned thermally.

Electrically calcined anthracite (ECA) is produced by calcining anthracite at from 1800 to 2200 °C in an electric furnace.  It has a higher carbon content and higher thermal and electrical conductivity. Its lower moisture, volatile, and sulfur content makes it suitable for manufacturing carbon electrode paste.

Calcined anthracite has a high carbon content. The calcination process reduces its volatile matter, enhancing the coal's stability and purity. Calcined anthracite coal finds use in various industrial processes where an increase in carbon content is required. Different grades of anthracite coal have different properties. Standard-grade anthracite has moisture of 15%, volatile matter to be at 10%, and fixed carbon at 73% minimum. Similarly, Ultra high-grade anthracite has a moisture content of 9%, ash (dry basis) of 10% maximum, and fixed carbon to be at 82% minimum.

CALCINED ANTHRACITE MARKET DRIVERS:

Growing demand from the iron and steel industry:

Calcined anthracite coal mainly used in steelmaking, it improves the carbon content in steel-making and ductile iron foundry. It has high carbon and low sulfur with a stable effect.

Calcined anthracite has its application in the electric arc furnace (EAF), way of steel production. According to the World Steel Association, EAF-based steel production accounts for approximately 26% of the global output. Anthracite is usually used as a source of carbon.

With the growing economic development around the world, the demand for steel and iron has grown. Steel is the basic component of the construction of roads, buildings, ports, stations, etc. India has become one of the largest makers of highway construction in the world. Highway construction in India increased at a CAGR of 5.3% between FY14-FY23. India constructed 10,457 km of highways in FY22. In FY23, the figure was at 10,331 km. All these road constructions needed the required steel as an important input in the making, which would relatively increase the demand for calcined anthracite for the making of steel.

Further, in the United States, total construction spending was 1,882,199 in January 2023 to 2,087,508 (millions of dollars), according to the Federal Reserve Bank. This shows the level of demand for the input material in the sector.

The growing application of calcined anthracite in water purification:

Growing economies like China and India are facing serious water scarcity, nearly one-fifth of the world’s population lives in China, but having only 6 percent of global renewable freshwater resources. The demand for water resources has enlarged the population giving opportunities for water treatment plants to be used for the purification of water. Anthracite is a commonly used filtering media. It has a unique property of hardness and high carbon content contributes to its longevity and resistance to breakdown for an efficient filtration medium.

The granular structure makes it suitable for the large surface area for the adsorption of impurities, such as iron, manganese, and other contaminants commonly found in water sources.  As the water demand continues to rise in many regions, anthracite would be a reliable and efficient tool in the water treatment solution. Its durability and versatility make it a useful substance for ensuring the purity of water supply, contributing to the well-being of communities around the world.

Asia-Pacific region to dominate the calcined anthracite 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. China produces about 1 billion tons of crude steel annually, which is more than half of the world’s steel production.

China dominates coal-based blast furnaces-basic oxygen furnaces, where calcined anthracite has been predominantly used. Additionally, several key players like Baosteel Group, Hesteel Group, and Shougang Group are based in China. Steel has several applications in the country majorly in infrastructure and real estate in the country.

India is the second largest producer of steel in the world. With production of crude steel and finished steel stood at 125.32 MT and 121.29 MT, respectively, in the FY23, the country has per-capita consumption of steel stood at 86.7 kgs in the same year. The region has a vibrant demand for industrial applications from various sectors making it a viable place for the consumption and demand of calcined anthracite.

Gas-calcined anthracite (GCA) is likely to be the fastest-growing type during the forecast period.

Gas-calcined anthracite (GCA) has a higher carbon content and relatively higher thermal and electrical conductivity than conventional anthracite coal. This type of calcining is controlled to achieve a lower electrical resistivity ranging from 1250µΩm to 1450µΩm, depending upon the need. Gas-calcined anthracite (GCA) is used to blend with electrically calcined anthracite (ECA) for cost and performance optimization.

It is the main raw material for manufacturing carbon electrode paste. Other applications include steel mill ladles, melting, holding, and blast furnace usage as carbon raisers, carbon additives, recarburizers, injection carbon, and carbon foaming material.

Further applications include electric steel ovens, water filtering, rust removal in shipbuilding, and the production of carbon material. Due to this multiple usage across the different industry segments, the usage and demand for the gas calcined anthracite would grow during the forecast period.

Calcined anthracite market Key Developments:

• In February 2024, JSW invested Rs 65,000 cr for an integrated steel complex in Odisha, which would generate 30,000 jobs in the region. It is an integrated steel manufacturing facility, a power plant, a cement unit, and jetties. The plant would have a production capacity of 13.2 million tonnes per annum.
• In February 2024, JFE Steel Corporation and JSW Steel Limited established JSW JFE Electrical Steel Private Limited, a joint venture company for grain-oriented electrical steel in Bellary in Karnataka, India. Total investment would be $670 million, planned to be fully operational by 2027. This investment would attract calcined anthracite in the region for the plant.
• In March 2024,  three steelmakers from the autonomous provinces and regions of China announced to the installation of new facilities by 2024.

The calcined anthracite market is segmented and analyzed as follows:

By Product Type

• Electrically Calcined Anthracite (ECA)
• Gas-calcined anthracite (GCA) 

By Application

• Smelting
• Electrode pastes
• Water Purification
• Other Applications

By End-user Industry

• Aluminum
• Iron and steel
• Battery
• Water filtration
• Others

By Geography

• North America
• United States
• 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
• United Arab Emirates
• Rest of the Middle East and Africa
• Asia Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Rest of Asia-Pacific