The rising demand from steel industries is anticipated to open up new avenue for Refractories Market

Purvaja Jadhao

posted on 5 months ago — updated on 1 second ago

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The Refractories Market is estimated to be valued at US$ 57616.65 Mn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

The rising demand from steel industries is anticipated to open up new avenue for Refractories Market

Market Overview:
Refractories are ceramic materials that withstand high temperatures and are used to line furnaces, kilns, incinerators, and reactors in industries like iron and steel, cement, nonferrous metals, glass, energy and chemicals. Refractory bricks are used to make refractory linings in these high temperature processes and applications. They are made from materials like bauxite, alumina, fireclay, silicon carbide and graphite to withstand extreme heat and prevent wear and tear of equipment. Key end use industries of refractories include iron & steel, cement/lime, non-ferrous metals, glass and others.

Market Dynamics:
One of the major drivers for the refractories market is growing steel production globally. According to World Steel Association, steel production increased by 3.7% to 1922 million tonnes in 2019 from 1849 million tonnes in 2018. Steel production is estimated to further increase in Asia Pacific region, driven by capacity additions in China and India. This increasing steel output drives demand for refractories used in basic oxygen furnaces and electric arc furnaces in steel plants.
Another driver is increasing cement production across the globe. The cement industry relies heavily on refractory materials for efficient functioning of kilns and other equipment operating at high temperatures. According to Global Cement Report, cement consumption increased by 2.1% to 4.1 billion tonnes in 2019. Growing cement production provides opportunities for increased demand of refractories.
Segment Analysis
The global refractories market is dominated by the fused cast segment. Fused cast refractories account for over 40% of the global market and are used in applications involving high thermal shock and quick heating and cooling cycles such as steel ladles and slags. Their ability to withstand thermal shocks and ability to chemically bond at high temperatures makes them ideal for such usage.

PEST Analysis
Political: Trade policies among major economies impact the demand for refractories from key end-use industries such as steel and cement. Subsidies and regulations promoting infrastructure development also positively influence the market.
Economic: Growth of the steel and cement industries, the major end-users of refractories, is a key factor driving demand. As economies develop, investments in infrastructure increase refractories consumption.
Social: Rising population and increasing urbanization are leading to higher demand for housing, cement, steel and aluminum, thereby benefiting refractory manufacturers.
Technological: Developments in material formulations such as fiber-reinforced refractories have enhanced resistance to corrosion and thermal shocks, improving refractories lifespan.

Key Takeaways
The Global Refractories Market Demand is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing steel production and infrastructure development across emerging economies. The market size for refractories was valued at US$ 57616.65 Mn in 2023 and is projected to reach over US$ 70000 Mn by 2030.

China dominates the global refractories market with over 40% share, aided by the country's large steel and cement industries. Other major markets include India, Japan, and the U.S. on account of their well-established construction and automotive sectors. The Asia Pacific region is expected to observe the fastest growth due to rising steel consumption from China, India, and other Southeast Asian countries.

Key players operating in the refractories market are Puyang Refractories Group Co. Ltd., Chosun Refractories, INTOCAST AG, Harbisonwalker International, Saint-Gobain, IFGL Refractories Ltd., Vesuvius, Imerys, Shinagawa Refractories Co. Ltd., Krosaki Harima Corporation, RHI Magnesita GmbH, Magnezit Group, Resco Products, Minerals Technologies Inc., Refratechnik, and Morgan Advanced Materials. Major players are focused on developing optimized product portfolios and expanding into high-growth markets through mergers and acquisitions.