Global Coke Industry - Procurement Market Intelligence Report
Published: Dec 2019
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Coke Industry Analysis
Spend growth in this industry has the potential to touch a value of over USD 6 billion with spend momentum accelerate at a CAGR of more than 7% between 2019-2024. Coke is widely being used as a substitute for coal in electricity and power generation plants to achieve energy efficiency. It is used as one of the essential raw materials in the production of steel that is currently facing an exponential demand from sectors such as railways, constructions, and automobiles. These factors are driving spend growth in the coke industry across regions. However, the high content of carbon emitted post the production of coke is compelling the environmental authorities tighten their leash around the production process. This is inhibiting spend momentum in the coke industry.
Top Spending Regions in the Coke Industry
According to the forecasts, APAC will claim the largest share in terms of spend growth in the global coke industry with North America being the second key player and a major exporter in the coke industry.
The construction and power generation industries in APAC are exhibiting a high demand for coke while some of the oil refinery expansion projects in China, India, and Vietnam will increase the supply of coke. This equilibrium in the demand and supply ratio is contributing to spend growth in the coke industry in APAC. The initiation of the coke gasification project by Reliance industries in India will increase the supply of coke, thereby promoting the demand-supply balance in the coke industry.
This region contributed about 60.1% of market share export of coke. Coke is finding an extensive usage mainly from the cement industry in the US where it is used as an efficient fuel in cement kilns. This adoption is due to the favorable properties of coke, such as its high sulfur content and low volatility factor.
The price of crude oil which is one of the critical raw materials in the production of coke will undergo extreme volatility owing to factors such as dwindling reserves and a rise in a trade war between nations. According to the coke price trends, this will exert a negative impact on the overall price in the coke industry.
A rise in fuel price will increase coke suppliers' logistics costs related to air freight, import/export duties, and sea, rail, and road transport.
Spot and volume-based pricing are the two most widely adopted pricing models in the coke industry. Spot pricing allows buyers procure in varying quantities of coke depending on their requirements. This can help the buyers can gain cost benefits from a sudden decline in prices of raw materials such as coke. Volume-based pricing helps buyers with large-volume requirements maintain a constant supply of raw materials in their inventories, which reduces the risk of supply shortages.
Download the free sample of this report to know what the key coke procurement best practices that you must adopt to address price dynamism in this market.
Insights Offered in this Coke Industry Report
Global and regional spend potential for the coke industry for the period of 2019-2024
Supplier relationship management practices in the coke industry
Supplier margins and selection criteria in the coke industry
Top coke suppliers and their cost structures
Top coke suppliers in the US and their cost structures
Coke industry spend analysis in the US
Coke price trends, and forecasts
Cost drivers influencing the coke prices
Insights into Coke Supply Market
Coke suppliers are using automation tools such as automatic temperature control, thermal energy calculator, and simulations models at their coke manufacturing facilities to minimize manual interference. This decreases operating cost and increases the productivity of the suppliers.
Collaborating with global coke suppliers will help buyers leverage benefits such as procure high-quality products, avail extended credit periods, improve buyer-supplier relationships, and include risk-sharing terms in the SLA. This will help reduce the overall cost incurred during the procurement of coke
Regional suppliers are taking advantage of the anti-dumping policies enforced by governments on category import to improve their sales and profitability during the forecast period. In addition, buyers with limited regional production prefer regional suppliers as these suppliers help reduce transportation cost and other duties, which will eventually reduce their cost.
Insights into Some of the Leading Coke Suppliers
This coke industry procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top coke suppliers. The top coke suppliers highlighted in this report include:
Sinochem Group Co. Ltd.
Shenhua Group Co. Ltd.
SunCoke Energy Inc.
Nayara Energy Ltd.
Royal Dutch Shell Plc
Criteria to select suppliers in this dynamic coke industry is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.