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The Foundry Coke Market size is forecast to increase by USD 500.7 million and is estimated to grow at a CAGR of 4.36% between 2023 and 2028. The market expansion is driven by several influential factors. The expanding steel industry significantly boosts the demand for foundry coke as it is an essential ingredient in the steelmaking process. Moreover, urbanization and infrastructure development in emerging economies create new opportunities for market growth. Increasing urbanization leads to a rise in construction activities, thereby increasing the demand for cast iron and steel products, and subsequently, for foundry coke. Furthermore, the infrastructure sector's development requires large quantities of steel, leading to a corresponding increase in foundry coke consumption. Additionally, the growing demand for foundry coke in emerging markets, particularly in Asia, contributes to the market's expansion.
Foundry coke is a specialized form of coke used primarily in the iron and steel industry for the purpose of smelting iron ore in blast furnaces. It is a high-quality carbon material produced by heating coal to a high temperature in the absence of oxygen, resulting in the removal of volatile components and the development of a porous, solid carbon structure.
The market is significantly influenced by the automobile sector and end-user industries, particularly in the cast iron production process. Furnaces, such as cupolas, utilize foundry coke as a primary reducing agent. Insulating materials, including stone wool, are essential in the production process to maintain high temperatures and prevent coke breakage. Coal output and imports play a crucial role in the market, as coal is the primary feedstock for coke production. The by-product recovery process generates coke as a by-product of coal coking. Foundry coke comes in various forms, such as hard coal coke, form-coke, and jumbo-ovens. The growth-generator for the market is the extensive use of iron, copper, lead, tin, zinc, and other metals in urbanization and construction activities. Foundry coke's high heat value and compact structure make it an ideal choice for these industries. However, the metal temperature during the production process can impact the quality of the coke. Therefore, maintaining optimal temperature conditions is essential to ensure the coke's extensive carbon content remains intact. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The burgeoning steel industry profoundly propels the worldwide market. Steel's diverse applications, from construction and automotive to machinery and appliances, amplify foundry coke demand. As the steel sector expands, foundry coke's pivotal role in pig iron production drives its need. Construction's reliance on steel for urbanization, infrastructure, and architectural projects amplifies this demand.
Moreover, automotive manufacturing, requiring steel-rich components like engine blocks and chassis, also fuels foundry coke usage. Likewise, machinery production, driven by technology and investment, relies on quality castings facilitated by foundry coke. With the World Steel Association projecting increased steel demand, these factors are set to underpin global market growth in the forecast period.
Rising demand for foundry coke from emerging markets is a key trend shaping the market. A prominent trend in the global market is the surging demand from emerging markets, particularly in APAC, South America, and the MEA regions. These markets are undergoing rapid urbanization, industrialization, and infrastructure development, propelling steel demand and subsequently, foundry coke. Notably, APAC's growth, driven by countries like China and India, features robust construction activity for modern infrastructure.
Foundry coke, essential for steel production, is in higher demand. Additionally, emerging market automotive sectors are expanding due to increased incomes and a burgeoning middle class, heightening automobile demand and driving the need for steel components reliant on foundry coke. With a focus on infrastructure and steel mill expansion, these markets are set to drive global foundry coke market growth in the forecast period.
Volatility in raw material prices is a key factor challenging the growth of the market. One of the chief hurdles in the global market is the instability of raw material prices, primarily driven by coal, especially metallurgical coal. Price fluctuations profoundly influence production costs and profitability for foundry coke manufacturers. Multiple factors contribute to this volatility. Supply-demand dynamics and unforeseen disruptions in coal production lead to price shifts.
Geopolitical elements, like trade disputes and policy changes, impact coal availability and cost. Energy market changes and the shift to cleaner sources also influence coal prices. Regulatory measures and carbon pricing raise coal production costs, affecting foundry coke manufacturers. Such raw material price instability poses challenges to cost management and pricing strategies, potentially impeding the global market's growth in the forecast period.
The market share growth by the pig iron segment will be significant during the forecast period. One of the major market shares of foundry coke is from the pig iron segment as foundry coke plays a key role in the production of pig iron, which serves as an intermediate product in the iron and steel manufacturing process. Pig iron is manufactured by smelting iron ore in blast furnaces using coke as a fuel and reducing agent.
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The pig iron segment was valued at USD 849.70 million in 2018 and continued to grow until 2022. Foundry coke is one of the important aspects of manufacturing pig iron as provides the necessary heat and carbon required for the smelting process. Thus the coke acts as a fuel, generating high temperatures inside the blast furnace, allowing the iron ore to undergo various chemical reactions. One of the key applications of foundry coke in pig iron manufacturing includes the creation of a reducing atmosphere within the blast furnace, where iron oxides are converted into molten iron. Another key application of foundry coke is mainly in the manufacturing of steel which is used for various construction activities including automotive manufacturing, infrastructure development, and machinery production. Hence, such wide applications are expected to drive the global market growth during the forecast period.
Based on the application, the automotive parts casting segment holds the largest market share. The use of foundry coke in automotive parts casting is critical for maintaining the reliability and performance of vehicles. Engine blocks, for example, are vital components that require excellent heat resistance, dimensional stability, and structural integrity. Foundry coke aids in achieving these properties, allowing engine blocks to withstand the high temperatures and mechanical stress experienced by an engine. Thus, as the automotive industry continues to grow and innovate, the demand for high-quality cast metal components remains strong, which will drive the growth of the automotive parts casting segment in the global foundry market during the forecast period.
APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The APAC market is set to flourish in the forecast period, driven by robust steel industries, thriving automotive and construction sectors, and strong demand in major countries like China, India, and Japan. China, the region's dominant player, is a leading consumer and producer of foundry coke, significantly impacting global dynamics. India's expanding steel industry and infrastructure projects also boost foundry coke demand. Established industrial sectors in Japan, South Korea, and Southeast Asia contribute further. Favorable factors like skilled workforces, cost-effectiveness, and raw material availability, coupled with urbanization and investments, bode well for the regional market growth during the forecast period.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Yeneng Carbon- The company offers foundry coke which is used as a reduction agent in various chemical reactions, such as the production of ferroalloys.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
ArcelorMittal SA, China Coke Group Holding Co. Ltd., Drummond Co. Inc., GR RESOURCE LTD., HEBEI YUNAI NEW MATERIAL TECHNOLOGY CO. LTD., Hickman Williams and Co., Italiana Coke Srl, Jiangsu surung High carbon Co. Ltd., Majufa Traders and Exporters, Nippon Coke and Engineering Co. Ltd., OKK Koksovny a.s., Quimica del Nalon SA, Richa Refractories, RIZHAO HENGQIAO CARBON CO. LTD., Rizhao Yeneng New Energy Technology Co. Ltd, Sesa Goa Iron Ore, Shree Arihant Trade Links India Pvt Ltd., Siddhi Vinayak Impex, Walbrzyskie Zaklady Koksownicze Victoria SA, and Zhongrong Xinda Group Co. Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market plays a crucial role in various end-user sectors, including the production of sintered metals, aluminum alloys, and magnesium alloys. As a key carbon source in metal smelting, foundry coke's properties, such as low ash content and high heating value, make it indispensable for maintaining efficient and high-quality production processes. Notable market participants include Bluestone Coke, Walter Coke, Sloss Industries Coke Plant, ERP Compliant Coke, and Buchanan State Foundry Coke Plant. Foundry coke is essential in cupola furnaces and non-recovery coke ovens, offering a denser structure and optimized furnace size for various types of metal smelting. The beehive process and modern coke furnaces at facilities like Pohang Steelworks and those managed by Walter Energy have advanced the production of metallurgical coke with a focus on high heating value and low ash content.
Strategic innovations, such as the use of ceramic and metallic coverings in furnace designs, and collaborations with industry leaders, have driven significant revenues and advancements in coke formulations. Market participants are investing in strategic collaborations and adopting advanced technologies to enhance the efficiency of their operations. During the assessment period, the demand for foundry coke is expected to rise, driven by increased coal imports and the growth of the metal smelting industry. The reaction to carbon dioxide in foundry coke formulations and the development of denser structures are key focus areas for improving insulation and overall furnace performance. Companies like SMS team and facilities such as Pohang Steelworks are at the forefront of these advancements, ensuring that foundry coke remains a vital component in the global metal smelting industry. The ongoing evaluation of furnace diameter and innovations in coke production techniques continue to enhance the market's efficiency and effectiveness.
Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market growth 2024-2028 |
USD 500.7 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.11 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
China, US, Germany, Japan, and Italy |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ArcelorMittal SA, China Coke Group Holding Co. Ltd., Drummond Co. Inc., GR RESOURCE LTD., HEBEI YUNAI NEW MATERIAL TECHNOLOGY CO. LTD., Hickman Williams and Co., Italiana Coke Srl, Jiangsu surung High carbon Co. Ltd., Majufa Traders and Exporters, Nippon Coke and Engineering Co. Ltd., OKK Koksovny a.s., Quimica del Nalon SA, Richa Refractories, RIZHAO HENGQIAO CARBON CO. LTD., Rizhao Yeneng New Energy Technology Co. Ltd, Sesa Goa Iron Ore, Shree Arihant Trade Links India Pvt Ltd., Siddhi Vinayak Impex, Walbrzyskie Zaklady Koksownicze Victoria SA, and Zhongrong Xinda Group Co. Ltd. |
Market dynamics |
Parent market analysis, market growth analysis, market research and growth, Market forecasting, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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