Market Trends of Refractories Industry
Increasing Demand from the Iron and Steel Industry
- The iron and steel industry is the primary end user of refractories, which accounts for around 70% of the market. These materials can withstand high temperatures, ranging from 260°C (500°F) to 1850°C (3400°F), without any significant change in their physical properties.
- The major refractory applications in the iron and steel industry include using internal furnace linings to make iron and steel, in furnaces for heating steel before further processing, in vessels for holding and transporting metal and slag, in the flues or stacks through which hot gases are conducted, and other applications.
- According to the World Steel Association, the production of crude steel for 63 countries in the month of February 2023 was 142.4 million metric tons (Mt). It indicates the demand prospect prevailing worldwide, which is instrumental in driving steel production activities.
- The top 10 steel-producing countries in the month of February 2023 included China (80.1 Mt), India (10 Mt), Japan (6.9 Mt), the United States (6 Mt), Russia (5.6 Mt), and various others.
- In September 2022, Essar announced its plans to invest USD 4 billion in building and commissioning a four-mtpa steel complex in Saudi Arabia by 2025.
- In the European Union, a mild steel demand recovery continues while improving economic sentiment and investment conditions. However, uncertainties in the political landscape related to the refugee crisis and Brexit are some of the risks to the financial situation. The demand for steel in the region is anticipated to grow slowly over the forecast period.
- All the factors above are expected to drive the global market during the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
Asia-Pacific region to Dominate the Market
- In the Asia-Pacific region, China is the largest economy and one of the world's largest manufacturing and production industries. China dominates the refractories market in terms of consumption and production owing to the abundant supply of raw materials.
- China is the largest producer of steel in the world. As per the World Steel Association report, China produced around 80.1 Mt (million tons) in February 2023, which is up by 5.6% compared to February 2022. This massive demand for steel in the country projects market opportunities for refractories.
- In India, by FY 2030-31, crude steel actual production in the country is forecasted to reach 255 MT. In Union Budget 2022-23, the Indian government allocated USD 6.2 million to the Ministry of Steel.
- Furthermore, China, under its 14th Five-Year Plan (2021-2025), has set coal-power capacity targets to about 1,100 GW. Thus, the network operator State Grid and the China Electricity Council have targeted plans to develop hundreds of new coal-fired power stations in the country.
- As per the data of the Japan Iron and Steel Federation, the crude steel production in the country reached 89.2 million tons in 2022, compared to 96.3 million tons in 2021.
- Overall, refractory demand in the Asia-Pacific region is expected to grow significantly during the forecast period.
Get Analysis on Important Geographic Markets
Download Sample
