Refractories Market

Refractories Market to Grow 2X amid Trends of Eco-Friendly Refractory Materials

Increasing demand for steel products and focus of key players towards continuous capacity expansions is paving way for numerous opportunities within the refractory market. Refractories are a mixture of different minerals, such as bauxite, kaolin, graphite and magnesium.

Even though, all these minerals are produced globally, all grades of these minerals are not suitable for refractories applications. As a result, there is often a necessity to import these minerals. China is the leading producer of refractories minerals owing to favorable mineral resources.

Due to disputed trade practices, the US and Europe have imposed anti-dumping duties on Chinese trades. Thus, high cost of raw materials associated with heavy import duties has stymied the growth of the global refractories market.

However, outbreak of nCoV-19 has impacted steel production industry as a whole and has resulted in degrading demand for refractory materials. Effects of the pandemic is expected to last for minimal of three consecutive quarters of 2020. Furthermore, resumption of production activity and halted infrastructure projects will result in a spike in demand for refractories.

Clay-based Refractories to Account for Three Fourth Market Share

Refractories designed from clay are usually produced in form of bricks and these bricks account for nearly 50% of global market share, by form. Furthermore, clay based refractories in form of bricks are used to line portions of the interiors of blast furnaces, blast-furnace stoves, and coke ovens, which has facilitated the growth of refractories market . However, non-clay refractories are expected to grow at an impressive CAGR of 5% over the forecast period.

Steady Growth in Steel Industries to Facilitate Global Refractories Demand

Refractories materials cost around 2-3% of steel production costs. Growing infrastructure, oil and gas, and automotive industries would drive the growth of the steel industry. Although refractory companies continue to find opportunities in cement, glass, and non-ferrous industries, it is the steel industry that massively influences the fortunes of refractories manufacturers.

Steel industries account for around three-fourth of global refractories demand and are forecast to continue their reign throughout the forecast period. Although global overproduction has also impacted the steel industries, there has been a steady recovery in the last year. Furthermore, investments in steel industries are likely to increase in developing and underdeveloped regions, as majority of the regions are focusing on self-reliance and cutting down on imports.

APAC Leads in the Refractories Business, As Regional Steel Industries Soar

Asia Pacific (APAC) is one of the lucrative markets for refractories in terms of consumption, with robust steel industry in the region accounting for bulk demand for refractories. Steady demand from the steel industry and relatively higher consumption of refractories per ton of steel is anticipated to fuel growth of APAC refractories market during the assessment period.

Asia Pacific is followed by Europe and North America accounting for one fourth of market share, in terms of revenue. Being mature markets, Europe and North America are expected to show similar trends with sluggish growth throughout the forecast period.

Companies Eyeing Inorganic Growth in Global Refractories Market

Global refractories market is fragmented in nature, leaving limited space for established players to expand. The global refractories market is projected to grow by a low single digit. Refractories producers are trying to reinforce their position in the market and are likely to adopt inorganic growth strategies, since this move will bolster their position in the regional markets. A series of joint ventures, mergers & acquisitions and overseas capacity expansions are other anticipated strategies in global refractories market.

Key Companies profield

• Vesuvius plc
• RHI Magnesita N.V
• Krosaki Harima Corporation
• Shinagawa Refractories Co., Ltd.
• Magnezit Group Ltd.
• Morgan Advanced Materials plc
• Refratechnik Holding GmbH.

As the impact of local and regional developments have become more pronounced, refractories companies from around the world have realized the importance of strategic collaborations and acquisitions. In September 2019, RHI Magnesita N.V. (Austria) made an acquisition in which they bought the refractories plant from Manishri Refractories & Ceramics Pvt. Ltd for US$ 6.3 Mn, which will produce magnesium carbon brick. This acquisition will help the company to penetrate into the Indian market.

Analyst viewpoint

“Northward trend in urbanization to heighten demand for building materials, thus creating numerous opportunities for refractory material players”, says the Fact.MR analyst.

Impact of Covid-19 on Refractories Market

Outbreak of nCoV-19 has resulted in imposition of nation-wide lockdown to contain spread of virus. As aftereffect of halted production and disrupted global supply chains for metals, has caused degradation in demand for refractory materials. Effects of the pandemic are expected to last for minimal of three consecutive quarters of 2020. Furthermore, resumption of production activity and halted infrastructure projects will result in rapid increase for demand for refractories.

About the Report

Fact.MR published an exclusive forecast report for refractories market between 2020 and 2030. The foremost objective of this report on refractories market is to pitch spearhead insights on market scenario, demand generators and technological advancements in the refractories market. Also, the study on refractories market addresses key dynamics, which are expected to diversify the sales and future prominence of refractories market.

The report on refractories market begins with an executive overview in which product definition has been provided. The report further proceeds with taxonomy of refractories market elaborating on the key segments.

Also, the report outlines visionary insights on dynamics of refractories market including drivers, restraints, opportunities and trends and pricing analysis along with the key buying factors for zeolites.

Supply chain analysis and pricing analysis of refractories market along with the difference between refractories used as per applications have also been included in the report to help the readers clearly understand the product framework map in REFRACTORIES market.

Global Refractories Market Segmentation

Fact.MR has studied the Global Refractories market with detailed segmentation on the basis of material, form, end-use, and key regions.

• By Material :

  • Clay
  • Non-Clay

• By Form :

  • Bricks
  • Monolithic
  • Others

• By End-Use :

  • Steel
  • Energy & Chemicals
  • Non-Ferrous Metals
  • Cement
  • Glass

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa

“This taxonomy prepared is confidential and intended exclusively for the individual or entity with whom it is being shared. Reading, disseminating, distributing, or copying this to any party other than the addressee(s) is unauthorized and prohibited.”