- Coal tar is a by-product of the coking process in steel manufacturing, widely used in producing coal tar pitch, which serves as a key binder in aluminum anodes, graphite electrodes, and high-grade refractories
- The demand for coal tar is primarily driven by the growth in aluminum and steel industries, the shift toward electric arc furnace steelmaking, and increasing adoption of carbon-rich materials in renewable energy systems, electric vehicles, and industrial applications
- Asia-Pacific dominated the coal tar market with a share of 52.5% in 2024, due to extensive aluminum production, growing steel output, and the presence of major coal tar distillation facilities
- North America is expected to be the fastest growing region in the coal tar market during the forecast period due to growing investments in graphite electrodes, carbon fiber components, and aluminum smelting
- High temperature coal tar pitch segment dominated the market with a market share of 53.1% in 2024, due to its widespread use in the aluminium and graphite industries due to superior carbon content and thermal resistance. Its high softening point and excellent binding properties make it an essential material in the production of carbon anodes for aluminium smelting and graphite electrodes. Moreover, the increasing global demand for aluminium in automotive and construction sectors is significantly contributing to the sustained dominance of this segment
