Global Demand for Refractories to Exceed 40 Million Metric Tons in 2014

Global demand for refractories is projected to rise 5.3 percent per year through 2014 to 40.7 million metric tons.  China will remain the largest national market and continue to comprise the majority of global demand.  Above-average growth will also occur in India due to solid gains in fixed investment expenditures.  Suppliers will benefit from an improvement in the key US market, which will rebound from dismal levels in 2009. Raw material supply will continue to be a challenge to refractory producers, especially those in Europe and the Western Hemisphere.  These and other trends, including market share and product segmentation, are presented in World Refractories, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The world refractory industry has been negatively affected in recent years by a slowdown in steel and iron output.  Given the refractory-intensiveness of ferrous metal production processes, coupled with the fact that this sector typically accounts for about three-fifths of the volume of refractories consumed, refractory producers contended with sluggish demand for their products in 2009.  Markets most affected were the developed areas such as the US, Western Europe and Japan.

Despite declines in the amount of units needed per ton of steel produced, iron and steel will have the strongest gains of any market through 2014 due to rising steel production.  Demand for refractories used in the production of other metals will rise, benefiting from increased output of materials such as aluminum.  Gains are also expected in the nonmetallic mineral products market, spurred by growth in the production of ceramics, cement and other mineral products, fueling demand for associated refractories.  Other markets, including petroleum, chemicals, paper and aerospace, will benefit from rising production by end users.

Among refractory forms, demand gains for bricks and shapes are expected to lag those for monolithics.  Monolithics are projected to grow at an above-average pace, as the use of these products provides an economic advantage by extending the interval between brick relinings.

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.