Impact of covid 19 on refractory industries
COVID-19 has the ability to destabilize the global economy in three ways: by directly impacting production and demand, by disrupting supply chains and marketplaces, and by having a financial impact on businesses and financial markets. Our analysts, who are keeping an eye on happenings all over the world, believe that the market will provide producers with lucrative opportunities following the COVID-19 situation. The purpose of the report is to provide a more detailed picture of the current scenario, economic recession, and COVID-19’s impact on the whole industry.
The research concentrates on the most up-to-date skillful features, such as a study of the worldwide Unshaped Refractory Material industry’s production network, revised product launching events, growth, and risk factors. Production procedures, volume, product requirements, staple sourcing, important vendors, clientele, organizational structure, and global presence are all included in the study.
On the basis of product, The production, revenue, price, market share, and growth rate of each kind are displayed in this study, which is generally divided into:
- Acid Refractory Materials
- Neutral Refractory Materials
- Alkaline Refractory Materials
On the basis of the end users/applications, The status and outlook for main applications/end users, consumption (sales), market share, and growth rate for each application are covered in this study, which includes:
- Steel Industry
- Nonferrous Metals Industry
- Cement Industry
- Glass Industry
The Unshaped Refractory Material Market Report’s Key Benefits for Stakeholders include:
- The market study provides detailed qualitative information on regions with strong growth potential as well as information on niche segments.
- Market share, demand, and supply ratios, supply chain analysis, and import/export statistics are all included in the market analysis.
- The research examines existing and developing industry trends as well as opportunities in the global marketplace.
- A thorough investigation compiles crucial data on the elements that will drive or stifle market growth.
- Monitoring the major competitors and following the key product positioning within the market framework is used to conduct an in-depth analysis of the industry.
- The Unshaped Refractory Material Market report provides a comprehensive qualitative and quantitative analysis of future forecasts and existing trends, as well as assistance in assessing current market prospects.
The market for refractories was valued at 27,448.25 kilotons in 2020, and it is expected to grow at a CAGR of more than 2.5 percent over the next five years (2021–2026).
Numerous countries were put on lockdown as a result of COVID-19, which had a significant impact on the global economy. Economic and industrial activities were temporarily halted, and the refractories market was affected in terms of both production and demand from end-user industries such as iron and steel, cement, energy and chemicals, ceramics, and so on.
The high expansion of iron and steel production in emerging countries, as well as an increase in the production of non-ferrous materials, are the primary factors driving the market examined in the medium term. Internal lining applications in iron steel and non-ferrous manufacturing are covered by refractories.
Furthermore, the glass industry’s increasing demand is a crucial component driving the expansion.
On the other hand, as environmental awareness grows, governments and environmental organizations around the world are establishing rules for the use and disposal of refractories. This is likely to stifle market expansion.
The Asia-Pacific region is predicted to dominate the market and to grow at the fastest rate. Emerging economies such as China, Russia, Mexico, and South Africa are spending substantially in large-scale infrastructure projects that are expected to increase the iron and steel industry’s growth significantly.
The iron and steel industry’s demand is on the rise
The iron and steel sector, which accounts for over 60% of the market, is the most important end user of refractories. These materials can endure temperatures as high as 260°C (500°F) and as low as 1850°C (3400°F) without losing their physical qualities.
Internal linings of iron and steel furnaces, furnaces for heating steel before further processing, vessels for holding and transporting metal and slag, flues or stacks through which hot gases are conducted, and other applications are among the most common uses of refractories in the iron and steel industry.
According to the World Steel Association, global steel demand reached 1.76 million metric tons in 2019 and is expected to rise to 1.81 million tons by 2021, representing a 1.7 percent increase. This reflects the worldwide market’s demand outlook, which is important in boosting steel output.
Global crude steel production in 2020 was 1,864 million metric tons, down 0.9 percent from 2019 owing to COVID-19, according to the World Steel Association.
In terms of consumption, Asia-Pacific is currently the iron and steel industry’s major user of refractories, followed by Europe and North America. During the forecast period, the United States is predicted to have the highest growth rate in the consumption of refractories in North America.
A slight recovery in steel demand is continuing in the European Union, as economic optimism and investment conditions improve. Uncertainties in the political scene, such as those surrounding the refugee crisis and Brexit, are, nonetheless, some of the economic concerns. Steel demand in the region is expected to expand at a moderate rate over the projection period.
During the forecast period, all of the aforementioned reasons are projected to drive the global market.
China is entitled to take control of the Asia-Pacific region.
In terms of volume, the Asia-Pacific region accounted for the highest share, accounting for roughly 68 percent of the overall refractories market in 2019. During the projected period, the area is also expected to have the highest CAGR of 3.33 percent.
Due to the local availability of raw materials such as magnesite, China dominates the refractories industry in terms of consumption and production.
Furthermore, when compared to other manufacturers, they are less expensive. The iron and steel sector consumes the most refractories internationally, as well as in China.
Growing building activity in China is driving demand for iron and steel manufacturing, which has fueled recent rise in the refractories market. The total amount of steel produced in China in FY 2019 was 996.3 million tons, and this figure is likely to rise in the next years. This forecasts the country’s steel demand, presenting a market potential for refractories.
The demand for refractories in China was hurt by industrial restructuring and a lower consumption rate of refractories per metric ton of steel. However, in recent years, the country’s consistent expansion in iron and steel production has fueled the rise of the refractories market.
The rising residential building industry is likely to support domestic non-ferrous production demand, which is a favorable driver for refractories demand growth in the next years.
China is the world’s largest automaker, according to the Organization Internationale des Constructeurs d’Automobiles (OICA). In 2019, the country alone produced 2,57,20,665 vehicles, accounting for around 30% of global output. Despite the fact that sales have declined, they are likely to rise in the next years, resulting in increasing steel consumption in the automotive body manufacturing industry, necessitating the need for new refractories in the region.
The chemical manufacturing sector in China is predicted to grow at a steady rate during the projection period, thanks to encouraging government initiatives and a large consumer base. In the near future, rising chemical production is likely to create an opportunity for the country’s refractories industry to flourish.
This article was orignally published on https://www.rrmsb.com/post/impact-of-covid-19-on-refractory-industries