Market Assessments

The following accounts give examples of recent MARKET ASSESSMENT studies completed by Roskill Consulting Group. To protect confidentiality, client names & identifying data have been omitted.

A study of the market for boron products in East Asia

Assignment

An existing supplier of a boron chemical was investigating the potential for expanding into the supply of other boron products across the East Asia region.  The client required a detailed review of current, and forecast, boron minerals and chemicals markets across the East Asia region.

Approach

A review of the major suppliers of boron to the East Asia region was conducted, using trade data to supplement company and country production data and establish key players in each geographical segment.  Major consumers of boron products across the glass, ceramic and metallurgical sectors were selected and in-depth interviews conducted, focusing on demand trends and product specifications.

Result

The report identified market share in boron products across the Asian region between major suppliers, together with current and future demand trends in the various boron-consuming industries.  This data was used to highlight any opportunities for the client as well as logistical and marketing hurdles faced in achieving such expansion.  The client continues to investigate expansion opportunities.

Assessment of the market opportunity for a potential producer of iron ore

Assignment

The client was considering establishing an operation in North America to produce direct-shipping iron ore (lump and fines).  The target market was steelmakers located on the North Sea coast of Europe or accessible via the North Sea ports.  Asia was seen as a secondary target.  Roskill was commissioned to assess the European market for iron ore and to evaluate the opportunity for a new entrant into that market.

Approach

The assignment began with a detailed analysis of iron ore supply to Europe and, to a lesser extent, Asia, along with an assessment of future market trends.  A review of existing and potential iron ore suppliers to the market was also undertaken.  This part of the work was carried out by desk research, drawing on Roskill’s extensive in-house information resources.  In a second stage of work, face-to-face interviews were held with almost all the integrated steelmakers in the target market that are supplied by the seaborne ore trade.  Those interviews were aimed at obtaining the industry’s opinion on the client’s market entry potential and on market drivers/limiters.

Result

In the report to the client, Roskill made a number of recommendations.  These included suggested modifications to the target market and highlighted the need to provide a more detailed product specification to potential clients as a matter of urgency.  The project proceeded to commercialisation in 2010.

Study of the market for borate products in Europe and East Asia

Assignment

The client wished to establish the market potential for borate products in Europe and East Asia.  These were to be produced from a large-scale operation in Eurasia and supplied to consumers across a wide range of end-use industries.

Approach

The initial stage of the work involved a desk-based review of the markets for borates, including trade flows and prices.  The key consumers of borates were identified.  In the second stage, a major programme of interviews was carried out with companies in Europe, China, the USA and elsewhere.  More than 60 interviews were held, either by telephone or face-to-face.

Result

In the report to the client, Roskill considered that there was a high level of interest among consuming companies to have a new, large, supplier of borates, to provide competition to the two dominant producers.  It was noted, however, that several key markets would not be open because of the chemical composition of the mineral to be produced, while others had adverse logistical aspects that would have made market entry extremely costly.  Based on Roskill’s assessment the client appears to have decided not to pursue the project further.

Study of the market for a magnesium mineral

Assignment

The client had acquired a carbonate deposit in Eastern Europe containing a high concentration of a magnesium mineral.  With various magnesium-based products available in the marketplace, Roskill was commissioned to evaluate what, if any, commercial products could be produced from the deposit and their potential in the market.

Approach

Roskill conducted a review of similar deposits, and any commercial operations at these deposits, to better understand the type of products that could be produced and target end-uses, such as refractories, cement, metal and chemicals.  Once this was established, a study of the competitive landscape, from a product and geographical perspective, was undertaken with an analysis of both low-value products for local markets and high-value products for export.

Result

The report rated the products that could be produced from the deposit together with the potential markets, highlighting any opportunities for the client.  The client is currently investigating processing options for the deposit.