The global coal tar pitch market is witnessing a steady growth, thanks to the consistent rise in demand for aluminum and steel. The fast-paced infrastructural development in developing nations has shot up the demand for both these metals. Besides, the organic growth in the automotive, aerospace and construction industry is also boosting demand in coal tar pitch market. This is because aluminum is required in all three areas.
Coal tar pitch is required to manufacture carbon electrodes which are used in smelting aluminum. It is also required to produce graphite electrodes used in steel arc furnaces. The global coal tar pitch market has been growing progressively and is expected to remain steady in the future, too.
Global Coal Tar Pitch Market: Drivers and Challenges
A large amount of the coal tar pitch produced across the world is used to manufacture carbon electrodes. Its economic feasibility and sustainability as a binder makes it the best raw material for carbon electrodes that are used to produce aluminum. And the rising demand for aluminum is the biggest driver of the global coal tar pitch market.
The number of infrastructure projects are increasing every year, especially in developing economies. At the same time, stringent regulations on vehicle emissions have paved way for light-weight automobile components. Aluminum with its light weight property is considered as one of the best materials for automobile components. The same property keeps aluminum in demand in the aerospace industry. The affordability of air travel has risen over the years, resulting in demand for more aircrafts. This is expected to support growth of the global coal tar pitch market in the near term.
Steel is also an important material required in infrastructure projects. Manufacturers across the world have shifted from conventional method to EAF steel manufacturing that requires graphite electrodes. And, graphite electrodes are made out of coal tar pitch. The stable growth of the steel industry is expected to drive the global coal tar pitch market.
Emission of harmful greenhouse gases during the production of coal tar pitch is emerging as a concern. Research is on to identify alternative methods to manufacture aluminum. At the same time, production of secondary aluminum (recycled aluminum) does not require coal tar pitch.
Global Coal Tar Pitch Market: Geographical Distribution
Developing economies like India and China have registered more than the average global growth rate. As a result, Asia Pacific region holds a significant share of the global coal tar pitch market. Regions like North America and Europe will witness a steady growth in the coming years. This is due to the recent laws pertaining to import duties on aluminum.
Global Coal Tar Pitch Market: Competitive Dynamics
The global coal tar pitch market is a consolidated space. Some key players are Koppers Inc., Rain Industries Limited, Shanghai Baosteel Chemical Co. Ltd, Himadri Specialty Chemicals Ltd, and Nippon Steel.