Market Trends of Metallurgical Coke Industry
This section covers the major market trends shaping the Metallurgical Coke Market according to our research experts:
Iron and Steel Making to Dominate the Market
- The majority of the metallurgical coke produced worldwide is used as fuel and a reducing agent in making steel and iron. Metallurgical coke, limestone, and iron ore are mixed in high-temperature furnaces where extreme heat causes the chemical properties to bond, forming iron and steel. The requirement for high-quality, tough, and resilient carbon makes metallurgical coke suitable for this application.
- Global steel production has witnessed significant growth in the past decade, especially in countries like China, India, Japan, and the United States. According to the World Steel Association, global steel demand was 1,796.7 million tons in 2022, and by 2023, steel demand will see further growth of 1% to reach 1,814.7 million tons.
- According to the World Steel Association, crude steel production was 140.7 million tons in December 2022, a 10.8% decrease compared to December 2021.
- Steel is used in many different fields, such as construction, railroads, auto manufacturing, and making capital and consumer goods.The growing industrialization in developing economies like India has majorly boosted the demand for steel in the past decade.
- Additionally, the increasing steel production capacity in countries like China and the United States has also been a major driving factor for global steel production.
- Hence, this positive trend in the global iron and steel industry is boosting the demand for metallurgical coke across the world.
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Asia-Pacific to Dominate the Market
- Asia-Pacific accounted for the majority of the global metallurgical coke market. China is one of the largest producers and major exporters of metallurgical coke in the world. The metallurgical coke produced in the country is used primarily in steel and iron production.
- According to Knoema, the production of metallurgical coke in China was 322.45 million metric tons of oil equivalent in 2021. In India, the production of metallurgical coke was 7.68 million metric tons of oil equivalent in the same year.
- Due to the commissioning of new coking capacity, the market in China will increase during the forecast period. But the new capacity won't be able to make up for the loss of a lot of inefficient capacity last year. According to Mysteel's annual forecast, this means that there won't be enough coke in 2021 either.
- China is the world's largest producer of iron and steel. Despite the pandemic, steel production in China continued to rise. Steel produced in the country is used both domestically and internationally.According to the National Bureau of Statistics, in 2022, China's crude steel output fell by 2.1%, or 21.73 million metric tons, to 1,013 billion metric tons from 2021.
- As per the World Steel Association, the steel production in Japan decreased to 7,200 thousand tons in November 2022 from 7,300 thousand tons in October 2022.
- China is one of the leading manufacturers of glass globally. Despite the pandemic, the manufacturing of glass was at its peak, mainly because of the rising construction sector.
- During the forecast period, the demand for metallurgical coke in China may go up because of the things listed above.
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