Industry Outlook & Drivers
Global Outlook on Refractory Market
Refractories are materials resistant to decomposition by heat, pressure, or chemicals. The refractories industry uses non-metallic or ceramics materials that are inorganic, heterogenous, and porous. Refractories are oxides or non-oxides or silicon, aluminium, calcium, magnesium, and zirconium. The refractories industry also uses chromium, tungsten, rhenium, niobium, and tantalum. Fireclay refractories, silica brick, high alumina refractories, magnesite refractories, zirconia refractories, and other specialty refractories are the refractory materials used.
Refractories are used for furnace lining and acidic lining. They are used as kiln lining material and act as insulation to withstand high temperatures. Other refractory materials used include alpha-alumina, silicon dioxide bricks, aluminum oxide bricks, calcined alumina, white fused alumina, brown fused alumina, etc. Refractories like Silica bricks are used in glass melting furnaces, while Alumina Bricks are used in the Metals, minerals, and mining industry.
The refractories market is categorized based on form, composition, type, process, end-user, and region. In terms of form, the market is segmented as monolithic and bricks & shape. By type, the market is segmented as acidic, basic, and neutral. Segmentation by the manufacturing process is dry press process, fused cast, hand-molded, formed, and unformed. The refractories market demand is boosted by end-users like iron & steel, glass, cement, non-ferrous metals, and non-metallic materials. Region-wise it is segmented as North America, South America, Europe, Asia Pacific, and Middle East Africa.
- The ongoing corona virus outbreak globally has lead to supply disruption of refractory raw materials globally. Logistics bottleneck offsets cautious market sentiment, resulting in pricing volatility. However this outbreak will be controlled in medium term and the supply will bound back to normal
- Emerging countries, such as China, India, Brazil are making huge investment in large-scale infrastructure projects. Also, the non-metallic industries in such economies are growing at a high rate and thus are anticipated to further drive the refractories market
- In APAC, the increasing production of chemicals is anticipated to generate opportunity for the growth of the refractories market in near future
Refractories - Global Demand
- The ongoing corona virus outbreak globally has lead to supply disruption of refractory raw materials globally. Logistics bottleneck offsets cautious market sentiment, resulting in pricing volatility. However this outbreak will be controlled in medium term and the supply will bound back to normal
- Emerging countries, such as China, India, Brazil are making huge investment in large-scale infrastructure projects. Also, the non-metallic industries in such economies are growing at a high rate and thus are anticipated to further drive the refractories market
- In APAC, the increasing production of chemicals is anticipated to generate opportunity for the growth of the refractories market in near future
Regional Market Snapshot
This section of the refractory market report analyses each regional market individually. The regional market analysis includes information on the refractories market size, market share, growth rate, and demand. It also includes a demand forecast. The regional report divides the global market into Australia, Europe, APAC, and North America.
Global Refractories Drivers and Constraints
Drivers
Non-mining Sectors
Glass, ceramics, cement, silica brick, energy, and chemical sectors drive the demand for refractories. These sectors contributed to 40 per cent of the refractory demand. Growth in these sectors was expected to increase their net market share by 2–5 percent in 2020
Infrastructure/Demand for Cement
Demand for cement and lime is ever increasing, due to the infrastructure growth in emerging countries, which in turn drives the demand for refractories in cement processing.
Metals, Minerals and Mining Processing Output
Increasing steel, non-ferrous and mineral output processing, and beneficiation due to a growing demand for the commodities and mining consumables, drives the demand for refractory usage. Rising commodity prices of steel, aluminium, and other non-ferrous minerals impact the global mineral production, which in turn would help in increasing the value of demand for refractories.
Constraints
Reduction in Specific Consumption
The specific consumption of refractory was close to 15–20 kg to produce 1 ton of steel. With increasing cost pressure and the development of thermally-resistant refractories, the specific consumption is expected to reduce to as low as 5kg to produce 1 ton of steel.
Fragmented Market
Though the refractory market is close to 49.86 MMT, the supply market is fragmented with the top 15 players having close to 20 percent market share. The marginal differences in annual revenues of these suppliers increase the competition among them and may result in normalizing the price of refractories. Suppliers having a stable research and development facility are expected to be ahead of the competition.
Cost Structure
The major cost factors involved are raw materials and labor costs, which account for about 80 percent of the total cost. The cost structure analysis studies the impact of each of the cost components on the prices. This includes raw materials as well as labor and consumables. The report also details the cost structures for alumina, magnesia, and fire clay refractories in China and globally. It lists the break up of the costs and gives insights into the prevailing cost trends.
The major cost factors involved are raw materials and labor costs, which account for about 80 per cent of the total cost.The cost structure analysis studies the impact of each of the cost components on the prices. This includes raw materials as well as labor and consumables. The report also details the cost structures for alumina, magnesia, and fire clay refractories in China and globally. It lists the break up of the costs and gives insights into the prevailing cost trends.
The cost and pricing section of the refractory market report also describes the different engagement models in the industry. The regional practices and variations in the contract structures and payment practices are described.
Procurement Best Practices
This section provides key insights into refractory procurement and allied services. These facts and figures are vital to understanding the different nuances and technicalities of procurement in refractories. The report details the prevailing contract and bid practices. The report then analyses the pros and cons of these procurement practices. Some aspects of the contract favor suppliers while others are more advantageous to the buyers. The competitiveness also differs for the different contract types. An accurate estimation of the refractory requirements and procurement quantities prevents delays in the bid process as well as the operations of the refractory.
The different aspects that one must consider before selecting suppliers for refractory procurement are listed and analyzed in detail. The technical, as well as legal parameters of the components, are studied.
Technological Advancements
The industry has seen many great advances in technology that have optimized the refractories industry. Some of these advancements are used to improve the refractories process while others improve the end product. The latest technological advancements have minimized the adverse environmental impact of the industry. Certain advancements are common to the industry while others are proprietary solutions provided by companies.
