Pune, India, Oct 2022, MRFR Press Release/Market Research Future has published a Cooked Research Report on the Global Foundry Coke Market.
Global Foundry Coke market
The premium grade of coke used in foundries is known as hard coal coke. The production of foundry coke involves the use of equipment and methods such the beehive, form-coke, jumbo-ovens, and by-product recovery process. In cupola furnace foundries, the product is used extensively to construct effective cupolas for melting iron and other metals like copper, lead, tin, and zinc. The foundry coke is superior because of its high carbon concentration, low ash percentage, superior strength, and superior heating value. Plus, it comes in a range of sizes to better suit individual needs.
There are several uses for foundry coke, including the production of automobile components, the manufacture of machinery, and even as an insulator. Growing preference for foundry coke over metallurgical coke is driving rapid expansion of the foundry coke market. In comparison to metallurgical coke, this product comes in a more convenient size. Lower blasting pressure, decreased reactivity with CO2, higher metal temperature, and less breaking during handling are all benefits of using large-sized foundry coke. For these reasons, foundry coke is a more environmentally friendly option than metallurgical coke.
Furthermore, in the pig iron production process, it plays an important role as a reducing agent, energy carrier, and supportive matrix. The foundry coke market will expand as a result of the increasing demand for the product throughout the anticipated time frame. However, the overall demand and the use of foundry coke in many applications are hindered by the fluctuating prices of foundry coke. So, naturally, this will be a drag on the expansion of the market.
According to the MRFR analysis, the global Foundry coke market size is projected to reach USD 3608.0 million by 2030 at a CAGR of 5%.
During the forecast time period, the foundry coke market is likely to expand thanks to the increasing demand for insulating materials around the world. As the automotive sector expands, demand for iron cast components rises, and iron casting becomes increasingly important. This should promote expansion in the global market. In addition, the growing demand for novel products, along with the high pace of technical advancement, is anticipated to open up substantial new avenues for the foundry coke sector. Nonetheless, the foundry coke market is likely to be constrained by substitutes and high R&D spending over the projection period of 2021–2028, while government regulatory rules pose the greatest challenge.
The global Foundry coke market is heavily fragmented and consists of many organized and unorganized industry players. ABC Coke (Drummond), CARBO-KOKS Spółka z o.o., Industrial Química del Nalón SA (NalonChem), Italiana Coke s.r.l., Nippon Coke & Engineering. Co., Ltd, Wałbrzyskie Zakłady Koksownicze Victoria SA, GR RESOURCE LTD, Hickman, Williams & Company, OKK Koksovny, a.s., and Shanxi Antai Group Co., Ltd are the key players operating in the global foundry coke market.
The global foundry coke market is highly fragmented, with both tier-1 and tier-2 players with leaders, including Drummond Company, Inc., Nippon Coke & Engineering. Co., Ltd, Shanxi Antai Group 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.
Most of the tier-1 key players operating in the global foundry coke market have acquired a significant market share by offering a broad range of products. Their primary focus is on increasing the production capacities to reach the desired organizational growth.
- ASH CONTENT <8%: The foundry coke with less than 8% ash content leaves less residue upon combustion, which in turn lowers the cost of waste management by the manufacturer. Low ash content coke is also very beneficial for the environment, as the coke with less ash content produces less pollution upon burning. The segment held a market share of 45.87% in 2021 due to its large-scale demand, keeping in mind its less harmful effects on the environment. This type of foundry coke is relatively expensive as compared to the other two types. The developed countries with stringent regulatory standards generally use this type of coke.
- 8% < ASH CONTENT <10%: The foundry coke with ash content between 8 and 10% is of relatively lower cost than the one with ash content <8% and obtained as a carbonized by-product after destructive distillation of certain types of coal. These types of foundry coke are primarily used in the production of cast iron in cupola furnaces. The countries of Asia-Pacific, Latin America, and the Middle East & Africa generally use this type of coke owing to its low cost.
- 8% < ASH CONTENT <10%: The foundry coke with more than 10% ash content is generally preferred by capital-intensive market players owing to its lower cost compared to the other two types. These cokes are majorly used as a primary fuel where high temperature and constant heating are required in automotive parts casting, machinery casting, insulations, and other applications.
- Automotive Parts Casting: Foundry coke is used to melt iron in the cupola furnace of iron foundries. The resulting iron is then used to produce cast iron of various shapes, sizes, and geometries. The cast iron finds vast application in the automotive industry to form automotive casting components such as engine parts, suspension, brakes, crankshaft, steering, gears, and bushings. The expansion of the automotive industry worldwide due to growing per-capita income, increasing consumer purchasing power, changing lifestyles, and growing economies are contributing to the demand for cast iron automotive components, thus driving the global foundry coke market. The adoption of electric vehicles in the coming years is also likely to boost the growth of the product market to some extent during the forecast period.
- Machinery Casting: Foundry coke is consumed mainly in copula furnaces to form machinery castings of various geometries such as pumps, compressors, pipes & fittings, valves, machine tools, electrical machinery, etc. High usage of iron cast machinery across the range of manufacturing industries such as chemical, oil & gas, food & beverage, pharmaceutical, railways, earthmoving, agricultural, etc., are contributing to the growth of the global foundry coke market.
- Insulation: Foundry coke is used to produce stone wool, which is a highly versatile and effective insulation material. The growth of this segment can be attributed to the growing usage of insulation across manufacturing industries such as chemicals, oil & gas, food and beverage, pharmaceutical, and others. Additionally, the rising construction industry has further boosted the demand for insulation across the globe.
- Others: The others segment includes consumer goods, electronics equipment, and sanitary.
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- North America: The United States and Canada now make up separate markets in North America. The market in North America held the second-largest market share in 2021, which is further trailed by Europe. Large-scale end-use sectors, robust technology and R&D capabilities, and vast production facilities all contribute to the United States' prosperity.
- Europe: Large-scale production of automobiles is credited with spurring economic development in the area, and the automotive industry is the leading private investor in R&D. The regional expansion of the European market can be attributed to the growth of end-user industries such as automotive, chemicals, and others. The UK and Germany are expected to provide an impetus for regional market growth in the review period.
- Asia-Pacific:Rapid industrialization in the region is driving the demand for cast iron components in the end-use industries such as automotive, chemical, oil & gas, food & beverages, agriculture, healthcare, and others, which in turn is fueling the growth of the product market in the region. China is the leading producer and consumer of foundry coke globally.
- Latin America: The Latin American market has been further categorized as Brazil, Mexico, Argentina, and the rest of Latin America. The growing demand is due to the rise in industrialization and urbanization in major countries, along with an escalation in demand for the construction, and automotive & transportation industry which is poised to keep the market growing at a healthy CAGR during 2022-30.
- Middle East & Africa: The Middle East & Africa is showing stagnant growth during the assessment period owing to the sluggish development of the region due to the presence of small economies. However, the development of the construction industry in GCC countries is anticipated to offer lucrative opportunities to the regional growth of the market.