Foundry Coke Market Analysis

Global Foundry Coke Market Overview

Foundry Coke Market Size was valued at USD 2411.19 million in 2023. The Foundry Coke Market industry is projected to grow from USD 2496.42 million in 2024 to USD 3614.07 million by 2032, exhibiting a compound annual growth rate (CAGR) of 4.73% during the forecast period (2024 - 2032). Foundry coke is made from coal that has been heated and distilled. It's usually made using two well-known processes: byproduct recovery or non-recovery oven (or beehive process). Foundry coke manufacturers primarily use the byproduct recovery procedure in the US. Several other countries, particularly China, employ the older beehive technique as a key production method. Foundry coke is a form of coke that is only used in iron foundries as a fuel source in cupola furnaces to manufacture molten iron. It also serves as a supply of carbon for the melted product as well as a fuel for melting iron. The liquid iron produced is utilized to create various geometries of cast iron products, which are then employed in various industries. Low ash content, high carbon content, high heating value, dense structure, high strength, and large size (than metallurgical coke) are the distinguishing characteristics of foundry coke that allow it to be used in iron foundries. It is also more cost-effective than metallurgical coke due to its high heating value. It achieves the requisite furnace temperature and delivers superior melting in less quantity and time. Foundry coke is used in various applications, including the casting of vehicle parts, machinery, and insulation. Foundry coke is crucial in the automotive industry, particularly in the production of cast iron components like engine blocks, brake drums, and cylinder heads. Its role as a fuel and reducing agent in cupola furnaces ensures the efficient melting of metal, producing high-quality castings with the necessary strength and durability for automotive parts. The low impurity levels and consistent quality of foundry coke are essential for achieving precision and reliability in these critical automotive components.

 Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Foundry Coke Market Trends

• HIGH DEMAND FOR CAST IRON IN THE AUTOMOTIVE INDUSTRY

Foundry coke is primarily used as a fuel in cupola furnaces to make molten iron, which is subsequently cast to produce various cast iron products in several forms and sizes. Metals account for around 80% of total vehicle weight in the automotive industry, with plastic, rubber, glass, paint, and textiles account for the remaining 20%. Steel, sintered metals, aluminum alloys, magnesium alloys, metal-based composite materials, and different ceramic and metallic coatings are among the most regularly used metals in the automotive industry. Austempered Gray Iron (AGI) and Austempered Compacted/Vermicular Graphite Iron (ACI/AVI) are two novel varieties of Austempered cast irons that have been created in recent years. Cast iron goods are used to make engine parts, suspension, brakes, crankshafts, steering, gears, and bushings, among other automotive components. Although cast iron components are heavier than steel, aluminum, and other composite metals, they have a number of advantages, including remarkable dimensional stability, which makes design easier in automotive industry, excellent vibration absorption, high durability, cost-effectiveness, and recyclability. Cast iron is commonly used in the fabrication of components for huge commercial vehicles and tractors that require high horsepower engines.

The global automotive sector is predicted to rise due to rising per capita income, improved living standards, and increasing automobile manufacturing, which is expected to enhance demand for cast iron and, as a result, promote the expansion of the Foundry Coke Market during the forecast period.

Furthermore, cast iron is also used to some extent in the manufacturing of electric vehicle components. The investments in the manufacturing of electric cars are increasing significantly worldwide. According to the data published by the International Energy Agency (IEA), there will be 125 million electric vehicles (EVs) on the road by 2030. According to Bloomberg New Energy Finance (BNEF's), Europe is expected to hold the largest share of the electric vehicles market by 2030. Thus, with the increasing manufacturing and sale of electric cars, the demand for cast iron components is likely to increase, which consequently is projected to boost the growth of the Foundry Coke Market during the forecast period.

• GROWING INFRASTRUCTURE AND CONSTRUCTION ACTIVITIES

The foundry coke market has been experiencing a significant surge in demand, primarily driven by the rapid growth of infrastructure and construction activities globally. As nations strive to improve their infrastructure to support urbanization, economic development, and industrial growth, the need for materials that can withstand the rigors of construction has increased. Foundry coke, a vital component in the production of iron and steel, is essential for various construction applications including the manufacturing of rebar, structural steel, and other materials crucial for building roads, bridges, and buildings.

One of the primary drivers behind this demand is the expansion of transportation networks, including roads, railways, bridges, and tunnels. These projects require vast amounts of steel, which is produced using foundry coke in blast furnaces. The construction of commercial and residential buildings, particularly in rapidly urbanizing regions, also contributes to the rising demand for foundry coke. Governments and private sectors are investing in smart cities, housing projects, and commercial spaces, further boosting the consumption of steel and, consequently, foundry coke.

According to China-Britain Business Council, in August 2022, the government of China has announced an investment of USD 1 trillion for the growth of infrastructure megaprojects providing a boost to the construction industry. Moreover, according to the India Brand Equity Foundation, India has to enhance its infrastructure to reach its 2025 economic growth target of USD 5 trillion. Additionally, the government has demonstrated a strong commitment to developing future-oriented infrastructure through a series of recent initiatives. Notably, the Gati Shakti plan, with a budget of USD 1.3 trillion, has emerged as a frontrunner in driving systemic and effective reforms in the sector yielding significant progress. These initiatives have also had a positive impact on programs such as the "Smart Cities Mission" and "Housing for All." Additionally, Saudi Arabia has expressed its intent to invest up to USD 100 billion in India, spanning various sectors including energy, petrochemicals, refinery, infrastructure, agriculture, minerals, and mining. Moreover, in 2024, the European Commission has announced the selection of 134 transport projects that will receive more than Euro 7 billion in EU grants from the Connecting Europe Facility (CEF), which serves as the EU's strategic investment tool for infrastructure. This funding marks the largest allocation under the current CEF Transport program. Notably, approximately 80% of the total funding will be directed towards rail projects, reflecting a strong commitment to enhancing and modernizing the EU's transportation network. These collective efforts demonstrate the commitment of governments and organizations to establish strong infrastructure frameworks, drive economic growth, and foster sustainable development.

Foundry Coke Market Insights

Foundry Coke Market by Type Insights

The Foundry Coke Market segmentation, based on Type the market has been segmented as Ash Content < 8%, 8% < Ash Content < 10%, and 10% < Ash Content. In 2023, the ash content < 8% segment generated the market revenue share of 47.34% and is expected to experience a CAGR of 5.13% in the forecast period. The ash content is defined as the number of inorganic contaminants and soluble metal parts such as abrasive powders and catalyst residues contained in the fuel. During the process of combustion, these compounds are oxidized and take the form of ash. This ash may cause wear to the injector, fuel pump, piston, and segments while forming sediment in an engine at the same time. For it to be useful in metal production processes, the ash content of foundry coke should not exceed 8%. Ash refers to the amount of residue remaining upon the complete combustion of any combustible substance. Moreover, it contaminates the molten metal, thus forming defects in the final product. In blast furnaces, where foundry coke is used not only as a fuel but also as a reducing agent, lower ash content ensures more efficient combustion and better temperature control. It helps to maintain the required chemical composition of molten iron and improves the overall quality of the produced steel or iron. More importantly, with reduced ash content, one requires fewer additional fluxes against impurities, which complicate the process to a certain extent; hence, it can reduce the costs of production. Hence, an ash content less than 8% in foundry coke is required for the maintenance of high standards in metal production and treatment.

Foundry Coke Market by Carbon Type Insights

The Foundry Coke Market segmentation, based on Carbon Type the market has been segmented as Metallurgical Coke, Petroleum Coke, Pitch Coke, Anthracite Coke, and Others. In 2023, the metallurgical coke segment generated the market revenue share of 73.73% and is expected to experience a CAGR of 4.81% in the forecast period. Metallurgical coke sounds like a soft drink, but it isn't. It's a processed carbon product derived from a unique type of coal. If coal is heated to extremely high temperatures, it can be purified into coke -- which is used during both iron and steel making. The selection of the proper coal raw material is one of the most critical processes in the coke-making process. Metallurgical coal is a type of coal that is used to produce metallurgical coke. There are two types of metallurgical coals that may be used to produce coke: hard coking coal and semisoft coking coal. As stated by Grande Cache Coal, these coals are ideal for the production of coke since they melt, swell, and again solidify when introduced into a superheated furnace. These kinds of coals also contain low levels of impurities. A third type of metallurgical coal, PCI, is occasionally used in steel or iron making to stand in for more-expensive coke, Grande Cache Coal reports. Coke is produced by heating up metallurgical coal to about 2,000 degrees Fahrenheit. The process takes between 12 to 36 hours in the oven to be completed, says the World Coal Association. Upon exiting the oven, the coke is cooled with water or air to about before entering storage or going directly to the blast furnace. The finished product weighs about two-thirds that of the original raw material, according to the U.S. Energy Information Administration. Coke is mainly used to make iron, which, in turn, is used as the main ingredient in steel.

Foundry Coke Market by Metal Smelting Type

Based on Metal Smelting Type, the Foundry Coke Market is segmented into Iron Smelting, Non-Ferrous Metal Smelting, Ferrous and Non-Ferrous Alloy Smelting, and Steel Smelting. In 2023, the iron smelting segment held the largest market revenue share of 41.27% and is expected to grow at a CAGR of 5.06% in the projected period. Metal smelting is a process that has been around for thousands of years, and it has played a vital role in human civilization. It's just a process for extracting metal from its ore. From this process, man has been able to come up with tools, structures, and innovations that formed our world. Smelting forms the basis for modern industries. It is processed ore that is turned into useful metals for use in a lot of applications, such as buildings, cars, planes, and even electronics. The foremost, widely used, and most primary metal in smelting is iron. Its versatility and abundance make it of great importance to metallurgy. Iron smelting is a process in smelting specifically used to extract iron from iron ore. It involves reducing iron oxide to produce molten iron, which is then cast into bars or ingots of any other preferred shape. Iron ore is actually the raw material for the production of steel. Smelting is a process of heating iron ore until iron separates from its impurities. A further combination of iron and carbon thus makes the base for steel production. This versatile material has revolutionized modern industry and construction.

Foundry Coke Market by Application

Based on Application, the Foundry Coke Market is segmented into Machinery Casting, Automotive Parts Casting, Insulation, Material Treatment, and Others. In 2023, the automotive parts casting segment held the largest market revenue share of 50.60% and is expected to grow at a CAGR of 5.01% in the projected period. 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. Foundry coke, a high-carbon material derived from coal, is used in the casting of automotive parts primarily as a fuel and a reducing agent in the production of molten metal. It provides the high temperatures needed for melting iron and steel due to its high calorific value. Additionally, foundry coke helps to create the ideal chemical environment in the furnace, promoting the reduction of impurities in the molten metal.

Foundry Coke Market Regional Insights

Based on Region, the Foundry Coke Market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In 2023, the Asia Pacific region held the largest market revenue share of 41.99%, which is expected to grow at a CAGR of 4.99% in the forecast period 2024-2032. The Asia-Pacific region leads the foundry coke market due to its vast production of steel and rapid industrialization. Huge consumers of foundry coke include countries such as China and India, based on large-scale steel-making processes. China is the largest producer and consumer of steel globally and thus has a big effect on global foundry coke demand. This region has the benefits of an infrastructure already laid down, an expanding industrial base, and major investments in steel-producing units. In addition, the reduced production cost and rich coal reserves of the Asia-Pacific countries make the region leading. The major producers and suppliers of coke jostle around in this region, making it more prominent. Economic growth and urbanization boost steel demand for the construction and manufacturing sectors. Hence, the demand for foundry coke increases accordingly. Apart from that, the Asia-Pacific market is highly competitive and technologically dynamic, thereby efficient and less polluting. All these factors together make the Asia-Pacific region retain its lead role in the Foundry Coke Market.

Foundry Coke Market Key Market Players & Competitive Insights

The competitive landscape offers an analysis of the key developments by the companies operating in the global. The global market for foundry coke is expected to grow significantly during the forecast period, owing to the increasing demand from the automotive industry. The growth of the automotive industry, increasing demand for machinery casting, and the rising sales of passenger vehicles are the major factors driving the market growth. The market represents a strong number in terms of consumption and is expected to grow year on year.

WZK Victoria SA, OKK Koksovny, a.s. , Italiana Coke s.r.l., Quimica del Nalon, GR Resource Ltd, Hickman, Williams & Company, Nippon Coke & Engineering. Co., Ltd, Drummond Company, Inc., Marut Enterprises and Sesa Goa Iron Ore are the key players operating in the Foundry Coke Market. The Foundry Coke Market is highly fragmented, with leaders, including Drummond Company, Inc., Nippon Coke & Engineering. Co., Ltd, and OKK Koksovny, a.s., holding the largest share of the global foundry coke due to their industry experience, diverse product portfolio, strong revenue base, and global distribution network.  OKK Koksovny, a.s basic activity is production of coke from quality coking coal, which is mined in the Upper Silesian Coal Basin, but also in other parts of Europe and the world. This company belongs to the European top in coke production. Also, Italiana Coke, European leader in the production of coke for metallurgy, siderurgy, and insulated products.

WZK Victoria SA: Wałbrzyskie Zakłady Koksownicze Victoria SA (Koksownicze Victoria SA) is one of the major producers of foundry coke in Europe. The company dominates in the foundry coke granulation of +100 mm. Koksownicze Victoria SA constitutes over 5% of the total domestic coke exports. It operates across Europe through four of its major product lines, including foundry coke, metallurgical coke, industrial coke, and carbon-based products. The company produces approx. 600 thousand tons of foundry coke per annum. Koksownicze Victoria SA has started selling coke to retailers, which offers an advantage over other producers to expand the sales and distribution network.

OKK Koksovny, a.s.: OKK Koksovny, a.s. (OKK) is a major producer of foundry coke in Europe. The company offers a vast range of cokes for foundry and metallurgical production, special metallurgy, heating, and other purposes. Additionally, the other product offerings include chemical products, which are formed in high-temperature coal carbonization. Foundry coke is used in the production of cast iron, insulation materials based on basalt, and glass fibers. The company has coke-producing units in the territory of Ostrava city–the Svoboda plant. The Svoboda plant has four coke batteries and a total of 210 ovens, with a production of 800 tons per year. Moreover, the company is a member of the Czech Coke-Making Society. As of 6 December 2013, OKK Koksovny, a.s. operates as a subsidiary of MTX Koksovny a.s. (Metalimex).

Key Companies in the Foundry Coke Market include.

• WZK Victoria SA


• OKK Koksovny, a.s.


• Italiana Coke s.r.l.


• Quimica del Nalon


• GR Resource Ltd


• Hickman


• Williams & Company


• Nippon Coke & Engineering. Co., Ltd


• Drummond Company, Inc.


• Marut Enterprises


• Sesa Goa Iron Ore

Foundry Coke Market Segmentation

Foundry Coke Market Type Outlook

• Ash Content < 8%


• 8% < Ash Content <10%


• 10% < Ash Content

Foundry Coke Market Carbon Type Outlook

• Metallurgical Coke


• Petroleum Coke


• Pitch Coke


• Anthracite Coke


• Others

Foundry Coke Market Metal Smelting Type Outlook

• Iron Smelting


• Non-Ferrous Metal Smelting


• Ferrous and Non-Ferrous Alloy Smelting


• Steel Smelting

Foundry Coke Market Application Outlook

• Machinery Casting


• Automotive Parts Casting


• Insulation


• Material Treatment


• Others

Foundry Coke Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Spain
  
  
  • Italy
  
  
  • Russia
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • South Africa
  
  
  • GCC Countries
  
  
  • Rest of the Middle East & Africa
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America