The foundry coke market is influenced by various market dynamics that affect supply, demand, and pricing within the industry. Foundry coke, also known as metallurgical coke, is a key component in the production of iron and steel in foundries. The market dynamics of foundry coke are shaped by factors such as the global steel industry, raw material availability, technological advancements, environmental regulations, and economic conditions.
One of the primary drivers of the foundry coke market is the demand for steel, as foundry coke is an essential material in the steelmaking process. The global steel industry plays a significant role in determining the demand for foundry coke, with factors such as construction activity, infrastructure development, and manufacturing output influencing steel consumption. Economic growth and industrialization in emerging markets also drive demand for steel and, consequently, foundry coke.
On the supply side, the availability of raw materials such as coal and petroleum coke affects the production of foundry coke. Coal, in particular, is a crucial raw material for foundry coke production, and fluctuations in coal prices and supply can impact the overall cost of manufacturing foundry coke. Additionally, changes in mining regulations, environmental policies, and geopolitical factors can disrupt the supply chain of raw materials, affecting the production and availability of foundry coke.
Technological advancements in coke production and steelmaking processes also influence market dynamics. Innovations in coke oven technology, such as the adoption of more efficient and environmentally friendly processes, can improve the quality and yield of foundry coke while reducing production costs. Similarly, advancements in steelmaking technologies, such as electric arc furnaces and oxygen steelmaking processes, may impact the demand for foundry coke as alternative methods of steel production emerge.
Environmental regulations play a significant role in shaping the foundry coke market dynamics. Concerns over air and water pollution associated with coke production and steelmaking have led to stricter environmental standards and regulations worldwide. This has prompted foundry coke manufacturers to invest in cleaner production technologies and pollution control measures, which can impact production costs and market competitiveness. Additionally, carbon pricing mechanisms and initiatives aimed at reducing greenhouse gas emissions may influence the long-term viability of traditional coke production methods.
Market dynamics in the foundry coke industry are also influenced by broader economic factors such as GDP growth, inflation, and currency fluctuations. Economic downturns can lead to reduced steel demand and lower capacity utilization in foundries, affecting the consumption of foundry coke. Conversely, periods of economic expansion may drive increased steel production and demand for foundry coke. Moreover, currency fluctuations can impact the competitiveness of foundry coke producers in global markets, particularly in regions where production costs are denominated in local currencies.
Foundry Coke Market Size was valued at USD 2.94 Billion in 2023. The Foundry Coke industry is projected to grow from USD 3.09 Billion in 2024 to USD 4.34 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.35% during the forecast period (2024 - 2032). Cast iron’s frequent use in the automobile sector and the development of the end-user sectors are the key market drivers contributing to the market’s growth and expansion.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The rising development of the end-user sectors drives the market CAGR for foundry coke. Due to its properties, the sole usage of foundry coke in furnaces with cupolas is the major driver propelling the worldwide foundry coke market's rise. Another driver driving the market is the product's growing popularity because of its expanding usage in manufacturing automobile cast elements and the expansion of the automotive industry. The worldwide market is expected to grow because of the greater need for iron-cast parts in the automotive industry. The foundry coke industry is also expected to profit from increased prices and growing requirements for insulating materials.
Additionally, the demand for insulating materials is increasing rapidly across various end-use sectors. Foundry coke is an energy source in producing stone wool, a very flexible and efficient insulating material. Stone wool is made from slag or a slag-rock combination. Stone wool is made by feeding foundry coke in layers that alternate with the unprocessed product in a cupola furnace in a proportion of 1:5 or 1:6 parts. Thus, the increase in demand for insulating materials is expected to generate profitable prospects for participants in the worldwide foundry coke market over the projected timeframe.
Foundry coke distributors experienced difficulties amid COVID-19. In 2020-21, coal output was 337.52 million tons (MT), a 3.3% decrease from the previous year's output. Coal imports totaled 248.54 MT in 2019-20, up 5.7% from 2018-19. Coal imports decreased to USD 9.7 billion in 2020-2021 from USD 15.6 billion in 2019-20. The bulk of wholesalers seeing large demand declines are in the sectors impacted most by shutdowns and supply chain disruptions. Yet, the effect was inconsistent; nations with better-managed outbreaks could put furnace's back up sooner, while those with long social distances lost more production.
For instance, metals constitute 80% of the overall weight of cars in the automobile sector, with the remaining 20% comprising materials such as rubber, plastic, transparent material, paint, and fabrics. Among the most often used metals in automotive manufacturing are steel, sintered metals, aluminum alloys, alloys of magnesium, composite materials, and various ceramic and metallic coverings. The automotive industry is expected to expand throughout the forecast period because of rising incomes per capita, higher standards of living, and increased production of cars, which will likely increase the need for cast iron and, consequently, encourage the growth of the worldwide foundry coke market. Thus, demand for Foundry Coke will increase due to the rising development of the end-user sectors. Thus, driving the Foundry Coke market revenue.
March 2024 – Jiangsu Surun High Carbon entered into a partnership with a Japanese firm to create innovative coke-making technologies. In order to improve efficiency and environmental performance during coking processes, this leading Chinese company in the field of coke making went into collaboration with its Japanese counterpart for the joint venture deal.January 2024 – ABC Coke plans investment on expanding cokemaking capacity located in Alabama, USA, to cater to growing foundry coke demand. Drummond Company’s division ABC Coke has disclosed that it intends to invest in boosting its facility’s production capacity situated in Alabama in the United States, where it carries out coke-making activities. This move aims at satisfying rising needs for foundry coke within America besides enhancing business competitiveness within the industry.
The Foundry Coke market segmentation, based on type, includes Ash Content < 8%, 8% < Ash Content < 10%, and 10% < Ash Content. Ash Content < 8% category dominated the market, accounting for 39% of market revenue (USD 1.09 Billion) in 2022. Foundry coke possesses a stronger structure, a higher carbon content, lower ash percentage terms, a higher strength, and a higher heating value which will boost category growth in fueling the overall market growth.
The Foundry Coke market segmentation, based on Application, includes Automotive Parts Casting, Machinery Casting, and Insulation. The automotive parts casting category generated the highest market revenue of about 46% (USD 1.3 billion) in 2022. The worldwide market is predicted to rise in response to increased consumption of iron-cast parts in the vehicle sector and the expansion of the automobile sector.
Figure 1: Foundry Coke Market, by Application, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the research provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Foundry Coke market accounts for the second-highest market share during the projected timeframe due to the increased use of the product for insulation purposes. In addition, the growing number of construction activities will boost market growth in the North American region.
Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Foundry Coke Market Share by Region 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe Foundry Coke market accounts for the second-largest market share. Rising product usage in automobile casting parts and end-user sectors such as automobiles, chemicals, and construction will drive market expansion. Further, the German Foundry Coke market holds the largest market share, and the UK Foundry Coke market is expected to grow and expand rapidly in the European region during the projected timeframe.
The Asia-Pacific Foundry Coke Market will dominate the market share and revenue during the projected timeframe. The rapid growth in the industrialization of this region is driving the market for product expansion by increasing requirements for cast iron elements in end-use sectors such as automotive, chemical, natural gas and oil,  agricultural, construction, and others will boost the overall market growth. Moreover, China’s Foundry Coke market dominates the market share, and the Indian Foundry Coke market is expected to grow and expand rapidly in the Asia-Pacific region during the projected timeframe.
Leading market players invested heavily in research and development (R&D) to scale up their manufacturing units and product lines, which will help the Foundry Coke market grow worldwide. Market participants are also undertaking various organic or inorganic strategic approaches to strengthen and expand their footprint, with important market developments including new product portfolios, contractual deals, mergers and acquisitions, capital expenditure, higher investments, and strategic alliances with other organizations. Businesses are also coming up with marketing strategies such as digital marketing, social media influencing, and content marketing to increase their scope of profit earnings. The Foundry Coke industry must offer cost-effective and sustainable options to survive in a highly fragmented and dynamic market climate.
Manufacturing locally to minimize operational expenses and offer aftermarket services to customers is one of the key business strategies organizations use in the Foundry Coke industry to benefit customers and capture untapped market share and revenue. The Foundry Coke industry has recently offered significant advantages to the Automotive and technology industry. Moreover, more industry participants are utilizing and adopting cutting-edge technology has grown substantially. Major players in the Foundry Coke market, including General Mills Inc., Amway, Conagra Brands Inc., Cargill Incorporated, Abbott Laboratories, Kraft Foods Group Inc., and others, are attempting to expand market share and demand by investing in research and development (R&D) operations to produce sustainable and affordable solutions.
Bluestone Coke, formerly known as Walter Coke, the Sloss Industries Coke Plant, and ERP Compliant Coke, serves as a metallurgical Coke manufacturer at Avenue North. The factory employs a hazardous distillation technique that requires burning coal in vertical slots furnaces in an oxygen-deficient environment. Bluestone Coke, LLC has a long history of making foundry coke and has been doing so for over a century. Bluestone Coke stated in October 2021 that it would stop coke manufacturing at its Birmingham site to rehabilitate it and increase safety requirements. Almost every employee present will be retained to oversee the renovation and maintenance. However, in 2019 they bought the ERP Coke factory in North Birmingham. The institution had suffered from liquidity issues and stood on the verge of closure at the acquisition point.
SunCoke Energy, Inc. provides excellent quality coke for metal blast furnace manufacturing through long-term, take-or-pay arrangements that pass commodities and some operating expenses on to clients. They employ a revolutionary energy-recovery system that recovers surplus heat to create steam or electricity. Their coke production plants are situated in the United States and Brazil. Brazil Coke, Domestic Coke, and Logistics are the three business sectors of the organization. The current governor of Virginia offered $50 million to a Buchanan State foundry coke plant in May 2021. SunCoke Energy, Inc. intends to improve its Buchanan County plant, based on a news release from the governor's office.
October 2021:Â Bluestone Coke stated in October 2021 that it would stop coke manufacturing at its Birmingham site to rehabilitate it and increase safety requirements. Almost every employee present will be retained to oversee the renovation and maintenance. However, in 2019 they bought the ERP Coke factory in North Birmingham. The institution had suffered from liquidity issues and stood on the verge of closure at the acquisition point.
May 2021:Â The current governor of Virginia has offered $50 million to a Buchanan State foundry coke plant. SunCoke Energy, Inc. intends to improve its Buchanan County plant, based on a news release from the governor's office.
January 2023: The SMS team and Paul Wurth struck an agreement with PSCO, a South Korean steel company. They created an association to develop Coke Furnace Unit 6 at Pohang Steelworks. Construction on the upcoming Coke Furnace Station is set to commence in 2023.September 2023: ArcelorMittal is going ahead with increasing European steel output since there’s a higher demand for steel products now than ever before. World's largest steel producer, ArcelorMittal, has announced plans to invest more money towards growing their European production base so as not only to meet but also exceed customer expectations amid robust construction and automotive sector recovery, which have led to increased consumption rates across all regions.
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