US Demand for Refractories to Reach $3 Billion in 2014

US demand for refractory products is forecast to advance 8.0 percent annually to $3.0 billion in 2014, reflecting a rebound in steel manufacturing from dismal 2009 levels.  Of the nearly $1 billion total gain in refractory demand by value between 2009 and 2014, the metals industry will account for more than 75 percent.  Total market demand by tonnage for the same period is forecast to climb 6.1 percent per annum to 2.7 million tons in 2014.  This level of consumption, though comparable to 2004 levels, still falls short of the 3.5 million tons consumed in 1999. These and other trends, including market share and product segmentation, are presented in US Refractories, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Although recovery in US steel production, as well as other economic sectors, will bode well for refractory demand growth through 2014, this growth is best considered in the context of improving refractory technologies.  These technologies have, in effect, lowered refractory consumption per unit of output in virtually all refractory-consuming industries, but especially in steel, thereby limiting tonnage gains, but supporting value gains through higher prices. 

Among refractory forms, demand for preformed shapes and certain monolithics will mirror shipments and see the strongest gains, because of their ease of use and versatility, respectively.  From a materials perspective, demand growth for nonclay materials will outpace that for clay materials.  The switch to better-performing products will continue, with the best opportunities expected for silicon carbide, extra-high-alumina, and zircon and zirconia refractories among nonclay products and high-alumina clays in that segment. 

Among the various nonmetallic refractory markets, the best growth opportunities will be found in the nonmetallic minerals market (cement, glass and ceramics) due to economic recovery and in nonmanufacturing markets through less traditional end uses such as waste-to-energy generation and restaurants with in-house bakeries and stone ovens.  However, while providing new opportunities, the small size of these markets means that their impact on aggregate refractory demand will be minimal. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.