Petroleum coke, or Petcoke, is a carbon-rich byproduct of oil refining and cracking that can be used for many purposes. It’s a hard, brown solid with the same chemical composition as coal. High-grade Petcoke can produce electrodes for aluminum and steel industries due to its low heavy metal and sulfur concentrations, while lower grade is often burned to fuel power plants or industrial heating applications.
To create petroleum coke, crude oil is heated to high temperatures in a coking unit. The reaction breaks down the large hydrocarbon molecules into smaller carbon and hydrogen atoms. The residue, called coke, is the raw material for other industrial processes and products.
Among the most important uses of petroleum coke is as an energy source for iron and steel production. The carbon content in petroleum coke makes it a very efficient and economical way to make steel by directly combusting the material in a reduction furnace. The carbon content also allows for higher levels of carburization in the resulting iron, making it much more durable and usable.
Steelmakers can use any type of carbonaceous fuel in the direct reduction process, including scrap steel or other recycled materials. However, petroleum coke is the preferred feedstock because of its superior energy efficiency and cost. Its ability to combust at higher temperatures produces more heat, which reduces the amount of iron ore required for the same level of steelmaking. Its high reducing gases also allow the iron to be made with less oxygen, which helps cut down on emissions.
The demand for petroleum coke is growing worldwide as industrial expansion and power generation needs rise. Rising oil production and refinery investment in Latin America will drive growth in the market there. Increasing production of alternative sources for electricity, such as wind and solar, could also help to offset the need for more traditional fossil fuels.
Our PCQ service provides weekly and monthly reports, as well as a library of past PCQ reports. Our Price & Highlights report includes pricing and commentary for calcined petroleum coke (CPC), green petroleum coke, and fuel-grade petroleum coke. Our Weekly Commodity Price Update provides prices and commentary for a broad range of oil, gas, coal, and dry bulk ocean freight rates.
The world’s steel industry continues to be a key consumer of petroleum coke. In fact, it is one of the biggest buyers in the market. The steelmaking process requires a large amount of carbon and other raw materials, so the industry is continually searching for ways to improve its efficiencies and cut costs. These efforts include investing in advanced technology and exploring alternatives to traditional steelmaking methods. One such alternative is electric arc furnaces, which require very little coal and can run on any carbonaceous fuel, including calcined petroleum coke. They can even be run on renewables like biomass and waste. With these innovations, the steel industry can minimize its environmental impact while still providing a strong, reliable product to consumers.
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