Coal Tar Pitch Market Growth Analysis Report by Form Type (Solid coal tar pitch, Liquid coal tar pitch), Grade (Aluminium grade coal tar pitch, Graphite grade coal tar pitch), Application (Aluminium Electrode, Graphite electrode, Roofing coating material) and Market Insights, Dynamics, Regional Outlook for 2023-2030
Categories: Chemical & Material
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Coal Tar Pitch Market Overview
“The global Coal Tar Pitch Market is expected to grow rapidly at a 5.36% CAGR consequently, it will grow from its existing size of from $4178.6 Million in 2023 to $5285.8 Million by 2030.”
Past, Present, and Future of Coal Tar Pitch
In 1893, the first coal chemical recovery furnaces were established in the US, contributing to 97% of metallurgical coke production by 1915. By-product ovens produced coal tar, which led to the development of an industry for distilling coal tar into various goods, including coal tar pitch, which has become the preferred binder for aluminum, commercial carbon, and graphite sectors.
The study explores the evolution of defining binder pitch quality based on physical properties, highlighting successes and failures in this endeavor. It also discusses changes in coal tar pitch qualities, successful and unsuccessful pitch adjustment attempts, and future supply and quality challenges in coal tar pitch.
Coal tar pitch, a dark black liquid formed after distilling coal tar, is used in asphalt, paints, coatings, and road building. It contains carcinogenic chemicals like benzene. The Occupational Safety and Health Administration's Air Pollutants Standard regulates exposure to coal tar and coal-tar pitch in various industries, including construction. OSHA provides safety and health information about coal-tar pitch to the public.
Coal tar pitch, a byproduct of coal tar distillation, is used in paints, coatings, asphalt, and roofing. Modern distillation methods can improve its quality. The pitch remains solid at ambient temperature and lacks a melting point due to its wide temperature range. However, the distilled compound contains chemical fumes that pose a health risk.
Key Takeaway:
- The industry is expected to grow at a rapid pace as global investments in urbanization increase.
- Aluminum grade coal tar pitch was anticipated to have the largest market share in 2022 based on grade segmentation.
- In terms of application segmentation, roofing coating material was the most popular in 2022.
- In terms of income generation, Asia Pacific was the top region in 2022.
Demand Outlook
Between 2018 and 2022, coal tar pitch sales grew at a 4.2% CAGR due to strong end-use industry demand. The COVID-19 pandemic reduced demand in 2020 and 2022, but growth is expected to return by the end of 2022.
The market is primarily driven by expanding end-use industries like road, rail, and bridge building, and the rising infrastructure sector. Despite the collapse of the construction industry due to Covid-19, the market is expected to rise significantly in the forecast years.
The rising global demand for graphite electrodes and the increased consumption of coal tar pitch for their manufacture are expected to drive the demand for coal tar pitch in the coming years.
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Market Dynamics
Growth Drivers
Potential impact of increased aluminum industry demand on the sales of coal tar pitch.
The global coal tar pitch market is expected to grow due to the growth of the aluminum industry and steel production. The automobile sector's continued manufacturing and demand for aluminum are driving metal manufacturers to produce large quantities, benefiting the global coal tar pitch market's growth.
Aluminum is a crucial material in the automotive industry, enabling the creation of lightweight, high-strength, safe, energy-efficient, and environmentally friendly vehicles. The global coal tar pitch market is primarily driven by increased aluminum demand, as it is economically feasible and sustainable as a binder for carbon electrodes used in aluminum production, making it the best raw material for carbon electrodes.
Infrastructure projects in developing nations increase annually, leading to increased demand for lightweight automobile components. Aluminum, a lightweight material, is highly sought after in the aerospace industry due to its lightweight properties. As air travel becomes more affordable, demand for airplanes increases, resulting in a growth in the global coal tar pitch market.
Steel is crucial in infrastructure construction, and manufacturers worldwide are transitioning to EAF steel production, which uses graphite electrodes made from coal tar pitch. The steel industry's steady growth is expected to drive the global coal tar pitch market.
Challenges/Restraints
The preference for replacements is a strategy to limit market growth
The global market expansion may be limited by the increasing number of substitutes for coal tar pitch, with petroleum asphalt-based seal coat being the most preferred due to its lower cost and similar results. Other alternatives like agricultural oil-based sealants and Gilsonite contain less PAHs but are costly. Despite their high cost, these compounds offer increased safety, leading to increased sales in recent years.
The expansion of the market is expected to be hindered by occupational hazards
Coal tar pitch workers are exposed to hazardous chemicals through ingestion, inhalation, or skin absorption. They work in foundries, coal gasification, coke manufacturing, and aluminum production. Workers working with roofing tar, pavement tar, coal-tar coating, coal-tar enamel, or refractory bricks face the greatest risk. Global market participants face the challenge of ensuring staff safety.
Opportunities
The research is being expanded to include enhanced versions to provide opportunities for growth
The global market is expected to experience growth due to increased research and development efforts. Recent developments in coal tar pitch fiber production highlight innovation efforts, with carbon fiber used in carbon composites and water treatment. High-end applications include energy storage and medical materials, but these are still being studied. This could lead to increased revenue in the coming years.
The COVID-19 crisis significantly impacted the coal tar pitch market.
The COVID-19 pandemic has significantly impacted the global economy, causing reduced demand, movement restrictions, and nationwide lockdowns, affecting businesses such as building, infrastructure, automotive, and transportation, and causing significant damage to various sectors.
The COVID-19 pandemic has significantly impacted various industries, particularly the construction sector, with a lack of finance, labor shortages, and strict regulations leading to numerous project postponements in 2020, resulting in substantial market losses.
The construction industry's growth and improved economy are expected to boost demand for coal tar pitch, with the market expected to grow at a faster rate.
Market Segment Analysis
The growth of the Aluminum Grade Segment is expected to significantly impact Coal Tar Pitch Sales.
The aluminium grade segment is projected to experience a 5.4% CAGR increase from 2023 to 2030.
In 2016, US aluminum production fell by 40-50% due to low-cost aluminum from Chinese producers, leading to factory closures and a drop in demand. Koppers Inc. had to shut down its coal tar pitch production operations. The US import of aluminum from China has increased, with 80% of coal tar pitch used in the aluminum smelting process.
The increasing demand for lightweight materials like aluminum in the automotive sector and laws aimed at reducing emissions have led to a surge in demand. However, existing tariffs are expected to enhance global aluminum production and increase coal tar pitch demand.
The forecast period's sales prospects for the graphite electrode Coal Tar Pitch market are being studied.
The graphite electrode segment is predicted to be worth $687.0 Mn by 2030, with the most popular application being electric arc furnace steel production. Coal tar pitch is used for graphite electrode production due to its high stability and efficient performance in harsh conditions.
The demand for graphite electrodes in China is expected to triple due to the growth of EAF steel manufacturing plants, causing limited supply for global EAF steel makers. This has led to the emergence of new graphite electrode producers, resulting in increased demand for coal tar pitch.
Competitive Landscape of the Coal Tar Pitch Market
- Qingdao Sanxing Chemical Co., Ltd. - China
- DEZA, a.s. - Czech Republic
- China Steel Chemical Corporation - Taiwan
- Rain Industries Limited - India
- Koppers (UK) Limited - United Kingdom
- JFE Steel Corporation - Japan
- Nippon Steel Corporation - Japan
- Tata Steel BSL Limited - India
- Koppers Inc. - United States
- Rain Carbon Inc. - United States
- JFE Chemical Corporation - Japan
- Himadri Speciality Chemical Ltd. - India
- Baoshun Technology Co., Ltd. - China
- Shanghai Baosteel Chemical Co., Ltd. - China
- Mitsubishi Chemical Corporation - Japan
- Nippon Steel Chemical Co., Ltd. - Japan
- Shanxi Hongte Coal Chemical Industry Co., Ltd. - China
- Sunlight Coking Co., Ltd. - China
- POSCO Chemical Co., Ltd. - South Korea
- Konark Tar Products Private Limited - India
Recent Development in Coal Tar Pitch Market
In March 2023, Koppers, a leading player in the global coal tar pitch market, unveiled an exciting breakthrough - a revolutionary line of high-temperature coal tar pitch tailored specifically for the construction industry.
In June 2023, Suncor Energy, a prominent player in the global coal tar pitch market, revealed a bold step towards growth and innovation - an ambitious expansion of its coal tar pitch production capacity in Canada.
In 2017, Koppers Inc., a wholly-owned subsidiary of Koppers Holdings Inc., announced its new long-term coal tar supply agreement with leading steelmaker ArcelorMittal.
In 2018, Himadri Specialty Chemicals Ltd announced its plan to expand its production facility at Singur in West Bengal by making a planned investment of Rs 1,000 crore over the next five years.
Regional Insights
What is the demand outlook for coal tar pitch in the United States?
The building and construction business, along with the expanding infrastructure sector, are experiencing significant growth due to the reliance on roofing chemicals, and the market is expected to significantly expand in the United States.
Ctp is a key component in the production of paints and coatings, with the market projected to experience rapid growth between 2023 and 2030.
The US roofing chemicals market is expected to grow significantly due to the thriving building and construction industry and the increasing infrastructure sector, both of which heavily rely on roofing chemicals.
The US, the world's largest vehicle manufacturer, is planning to evolve its automobile industry to reduce pollution and improve fuel efficiency. The country is predicted to generate a revenue of $222.56 million in the coal tar pitch business by 2030 due to increased demand from both industries.
What is the expected size of the Japanese and Indian markets for coal tar pitch?
The APEC coal tar pitch market is predicted to rapidly expand by 2030, driven by capacity development strategies by various market players, including India's largest manufacturer, Himadri, which holds a significant market share of over 68%.
UACJ, Japan's top aluminum manufacturer, caters to various sectors, including aluminum cans, automobile parts, electrical and medical products, and aviation parts. This has led to a projected market for coal tar pitch in India and Japan reaching $290.7 million by 2030.
Why is China seen as a significant market for coal tar pitch?
China's growth rate is projected to reach 6.02% annually between 2022 and 2030, leading the global demand for coal tar pitch. The country, which accounts for over half of global aluminum output, is in high demand for coal tar pitch for primary aluminum production, primarily due to increased demand from the aluminum manufacturing industries.
China's transition to electric arc furnace production due to environmental rules has led to a threefold increase in demand for graphite electrodes, causing a global shortage for other steel manufacturers.
The demand for coal tar pitch is expected to rise significantly due to China's robust expansion in building and infrastructure sectors over the past decade.
Segments Covered in the Coal Tar Pitch Market
Coal Tar Pitch Market By Form
- Solid
- Liquid
Coal Tar Pitch Market By Grade
- Aluminum Grade
- Graphite Grade
- Special Grade
Coal Tar Pitch Market By Application
- Aluminum Electrode
- Graphite Electrode
- Roofing Coating Material
- Blast Furnance Linings
- Chemical Intermediates
- Sealents
Coal Tar Pitch Market By Region
- North America
- Latin America
- Eastern Europe
- Western Europe
- APEC (Asia Pacific Excluding China)
- China
- Middle East & Africa
Frequently Asked Questions:
What is the current size of global Coal Tar Pitch market?
The Coal Tar Pitch market is expected to total US$ 4178.6 Mn in 2023.
What is the cosnumption outlook for Coal Tar Pitch Market market?
The Coal Tar Pitch market has been estimated to exhibit growth rate of 5.36% between 2023 and 2030 on value basis.
Which grade segment is expected to contribute significantly to growth for the consumption of Coal Tar Pitch?
Aluminum grade segment is expected to contribute major growth share to the overall market in 2023.
Who are the top players in the Coal Tar Pitch Market?
Koppers Inc., Coopers Creek Chemical Corporation, Himadri Specialty Chemicals Ltd., Rain Industries Limited, Nippon Steel & Sumikin Chemical Co., Ltd., Neptune Hydrocarbons, JFE Holdings, Inc. and others are the leading market players.
What is the market outlook of Coal Tar Pitch in China?
The demand in China is expected to increase by 6.02% CAGR between 2023 and 2030 on value basis.
Base Year:2022
Historical Data:2018-2022
No of Pages:122
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