The petroleum-coal tar pitch market is expected to reach a value of over US$5145 million by the end of 2028.
Tier 1 companies in coal tar manufacturing represent 60 - 70% share of the total market revenue. With massive coal tar distillation capacities across the globe, these players in coal tar pitch (CTP) landscape maintain their focus on both, standard grade and special grade CTP production.
Tier 2 players have a strong presence over restricted regions, whereas that of Tier 3 competitors is limited to regional sales. Standard grade coal tar pitch is the key focus area for the latter two, according to Future Market Insight’s study on the global CTP landscape.
“Production facility expansion, strategic acquisitions, and CTP product innovation will remain the key developmental strategies trending among leading players,” says a senior research analyst at FMI. The analyst adds further, “Massive aluminium demand from automotive and transportation sectors has been pushing the aluminium production levels 4 - 5% (yearly) since the recent past. Growing demand for lightweight vehicles is among the most impactful factors driving the consumption of aluminium, subsequently contributing to sales of CTP.”
Long-term contractual partnerships and backward integrated supply rule strategic minds of CTP manufacturers
While manufacturers of coal tar pitch are preferring long-term supply contracts with leading coal tar manufacturers, FMI has also identified these players entering strategic partnerships with steel manufacturers, where coal tar is often the byproduct of coke processing ovens. A few other activities that make this landscape dynamic include long-term contracts between manufacturers of coal tar pitch and those of primary aluminium and graphite electrode, with a sole objective to sustain the CTP supply to end markets.
Aluminium grade CTP holds a winning revenue share in CTP market
Application-wise, around 80% revenue share belongs to the aluminium electrode, according to the study. As CTP is increasingly being consumed by aluminium smelters lowing to higher sustainability and economic feasibility, the mushrooming aluminium production is constantly driving the growth of coal tar pitch landscape. In 2019, the revenue of aluminium grade CTP is pegged for over 5% y/y growth. Besides, graphite electrode is also slated for promising performance and the application base of CTP as a chemical intermediate in carbon black manufacturing is visibly growing.
Development of specialised ‘zero qi impregnating’ CTP expands applicability
A specialised ‘impregnating’ pitch obtained by processing coal tar at a high temperature is widely used in the graphite industry during the electrode manufacturing process. The resultant technological advancements in the life of electrodes pushes CTP applications in roofing, coating, electrode, refractory, and others.
China commands over global CTP landscape, India leads Asia Pacific’s CTP scenario
China, India, Russia, and Western Europe have a significant aluminium production base, whereas MEA is demonstrating promising growth in CTP landscape in recent years. North America, however, is observing passive growth over the recent past, post decline in the aluminium production levels.
According to the FMI’s report, China is the global leader in CTP ecosystem owing to significant aluminium production and thriving production levels of graphite electrode. China is projected for a 6% y/y revenue growth by this year’s end, reflecting ample growth opportunities for CTP manufacturers.
On the other side, APAC’s market for CTP is witnessing growth concentration in India that has been attributed to an impressive rate of aluminium production in the country.
Read the full report here.