What is Raw Material? Formula, Types, & Importance

Examples of calculating raw materials

Now, coming onto some essential formulas to use for calculating raw materials.

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To know how much raw material is used in the manufacturing process, we can use the below formula:

Opening raw material + raw material purchases – closing raw material

= Raw material used

Opening raw materials worth – $ 12000

Raw materials purchased worth – $ 5000

Closing raw materials – $ 9000

So let us calculate as per the above formula,

 12000 + 5000 – 9000 = 8000

Thereby, when we apply the formula the result will be the raw material worth $ 8000 were used in the process.

All the closing stock worth, opening stock worth, materials purchase worth is taken from the balance sheet.

The formula used to get the closing stock of raw materials is as follows.

Opening raw materials + raw material purchases – raw material used = Closing raw materials

Let’s understand this with the help of an example,

Suppose Star Manufacturing Company has

Opening raw materials worth – $ 12000

Raw materials purchased worth – $ 5000

Raw material used worth – $ 8000

Therefore, as per the formula,

12000 + 5000 – 8000 = 9000

Hence, closing raw materials worth $9000 is with Star Manufacturing company.

Raw materials fuel the chemical industry’s many processes and products. In “20 examples of raw materials chemical,” you’ll learn about organic and commodity chemicals, crude oil, natural gas, and caffeine. Various industries and businesses use these raw materials, which are processed into valuable products. They will be examined for their sourcing, processing, manufacturing, sustainability, and regulatory compliance in the chemical industry. Explore the chemical industry’s backbone.

Understanding Chemical Industry Raw Materials

In the chemical industry, we find a wide range of raw materials used to make everyday products. Anyone in this industry must understand these materials, their extraction, processing, and integration into manufacturing.

From organic and commodity chemicals, these raw materials underpin the chemical industry. Unlike carbides, carbonates, and cyanides, organic chemicals are carbon-based and mostly come from oil and natural gas. Pharmaceuticals, dyes, polymers, and more depend on these compounds. However, commodity chemicals are mass-produced and form the basis of many chemical products. Their use in plastics, resins, and synthetic fibers makes them valuable in the chemical industry.

Raw materials are crucial to chemical manufacturing. They are the foundation of all chemical reactions. Industrial processing transforms crude oil, natural gas, coal, and botanical extracts into finished products.

Materials are crucial to this process. For production and value chain efficiency, the chemical industry needs quality raw materials. Responsible resource extraction considers environmental impact and sustainability.

Quality control measures matter too. Raw material quality greatly affects product safety and efficacy. Thus, rigorous testing and monitoring are done throughout the manufacturing process.

Finally, the chemical industry follows strict environmental and safety regulations. Raw material extraction and processing require compliance with these regulations.

Detailed Look at 20 Key Raw Materials

In the chemical industry, we find many raw materials that are essential. A detailed look at 20 key raw materials and their role in this sector.

Open-pit and underground mining supply industrial minerals like limestone, clay, and silica. They are processed to remove impurities and used in construction, electronics, and automotive.

River beds and quarries supply most construction aggregate, including sand, gravel, and crushed stone. The construction and infrastructure industries use it after screening and washing.

Refineries turn crude oil from oil wells into gasoline, diesel, and jet fuel. The chemical industry uses it to make petrochemicals.

Processing underground natural gas removes impurities and makes it suitable for heating, electricity generation, and chemical and plastic production.

Power and steel are made from mined coal. This raw material is used to make steel industry coke.

Managed forests provide wood and bark sustainably. Production of timber, pulp, and paper involves several processing steps.

Plastic pellets or granules are made from petroleum and natural gas. Molding or extruding these produces packaging, auto parts, and more.

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Steel is made in blast furnaces from iron ore and scrap. Due to its strength and durability, construction, automotive, and other industries use it.

Forest-sourced lumber is processed into different sizes and grades for construction and furniture.

Bioenergy and biofuels are made from wood chips, agricultural waste, and organic waste.

Mined minerals include iron, copper, and bauxite. They are processed to extract metals used in various industries.

Rubber tree sap produces rubber blanks and latex. They make everything from tires to surgical gloves.

Yarn and fabric are made from cotton. The textile industry uses it extensively.

The mineral borate produces boric acid. Used in glass, ceramics, and detergents.

Plant extracts are used to make pharmaceuticals, cosmetics, and food additives.

The caffeine comes from coffee beans and tea leaves. This is used to make beverages, drugs, and cosmetics.

Finally, limestone and marble provide calcium carbonate for cement, glass, and supplements.

Each raw material has a unique sourcing, processing, and use story in the chemical industry, demonstrating their importance in this complex sector.

Raw Materials to Finished Products

The chemical industry’s transformation of raw materials into useful products is fascinating. This process involves extraction, processing, and manufacturing from sourcing to product.

This process revolves around raw materials. Each material—industrial minerals, crude oil, natural gas, coal, or botanical extracts—has a unique extraction method. Quartz and limestone are mined, while crude oil and natural gas are extracted underground. Botanical extracts are plant-based.

These raw materials are processed industrially before their next step. Raw biomass is converted into biofuels or chemical feedstock, while crude oil is refined into petroleum products. Mineral ores are processed to extract valuable metals, and botanical extracts are purified for pharmaceuticals and cosmetics.

This transformation continues with the manufacturing process, where processed raw materials are turned into finished goods. The chemical industry uses different manufacturing processes depending on the raw material and end product. Plastics are polymerized from crude oil monomers, while steel is smelted in a blast furnace from iron ore.

Quality control is essential throughout this process. Rigorous testing ensures that raw materials meet standards before processing and that finished goods meet industry standards before sale.

This transformation of raw materials into finished products goes beyond making them usable. These processes’ environmental impact and sustainability are also important. The chemical industry strives to reduce waste, energy use, and use of renewable resources.

Chemical Industry Raw Material Sustainability

Modern life relies on the chemical industry, which is often criticized for its environmental impact. Its environmental impact comes from raw material extraction, energy-intensive manufacturing, and waste generation. However, the industry is focusing more on sustainability to reduce this impact and ensure a greener future.

Sustainability starts with raw material sourcing. The industry is using renewable and recyclable materials whenever possible. Bioenergy and biofuels are being made from organic waste biomass instead of fossil fuels. Forest resources are from sustainably managed forests, minimizing biodiversity loss.

The next step is processing these raw materials. The industry is using cleaner, energy-efficient processes to reduce emissions and waste. Catalysts can improve chemical reaction efficiency and reduce byproducts.

Circular economy models are emerging in manufacturing. This includes designing products for durability, encouraging reuse and recycling, and making use of waste materials. Plastic, once a problem waste material, is now recycled into new products or used as chemical feedstock.

These sustainability practices depend on quality control. Raw materials and finished products are rigorously tested to meet environmental standards.

Chemical industry supply chain management is another sustainability factor. Companies want transparent, traceable supply chains with environmentally friendly suppliers. This reduces environmental impact, promotes ethical labor, and boosts local economies.

Finally, the industry is funding R&D to develop new environmental solutions. This includes creating eco-friendly materials, improving processes, and reusing waste.

Raw material sourcing affects the chemical industry

The chemical industry relies on raw material sourcing for its complex processes and interactions. The type, quality, and availability of these materials greatly impact chemical industry production and performance.

The manufacturing process and product depend on the raw material. Petrochemicals, which make plastics, detergents, and synthetic fibers, are made from crude oil and natural gas. However, bauxite and iron ore are processed into metals used in various industries.

Also important is raw material quality. Impurities can reduce production efficiency and product quality. For example, steel production requires high-quality iron ore for strength and durability. Thus, strict quality control begins at sourcing.

Another important factor is availability. Any raw material shortage can stop production, costing money and market share. To maintain raw material supply, the chemical industry invests heavily in supply chain management.

Raw material sourcing has environmental impacts. Deforestation, biodiversity loss, and pollution from raw material extraction and processing affect industry sustainability. Therefore, the industry is adopting more sustainable sourcing strategies, such as using raw biomass or recycled plastic waste.

Raw material costs are also important. Raw material price fluctuations affect production costs and product prices. Tracking commodity prices and managing price volatility risks is crucial to the industry’s operations.

Equally important is regulatory compliance. Environmental, worker safety, and fair trade regulations can affect raw material sourcing.

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