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[April 2005]
World Refractory Magnesia Market Moving Back Towards Balance
The world refractory magnesia market continues to be in a state of oversupply but has been moving back closer to balance in recent years, according to a new report from market analyst Roskill Information Services Ltd (London, England). The main reason for this has been the exit of producers in Italy, the UK and the USA from the market, with some companies closing plants while others have simply moved into other markets.
'Economics of Magnesium Compounds & Chemicals' (10th Edition, 2005) explains that the combination of slow growth in crude steel production and improved refractory specifications and applications continues to reduce consumption of refractories worldwide. Refractories are such an important market for magnesia that the decline in this market is estimated to have more than halved total magnesia consumption in most industrialised countries over the last 30 years.
Over the next three years to 2008, Roskill forecasts a halt in this decline with average annual growth of 1.5% per annum to 2% per annum. This increase will be driven by increased demand from the refractory sector in China and growth in demand for caustic calcined magnesia and magnesium hydroxide in non-refractory applications.
The majority of global magnesia is located in the centrally planned and former centrally planned economies of China, North Korea and Russia. Producers in these countries have the capacity to produce over 6 million tons per year (mtpy) of dead burned magnesia from magnesite, or over 75% of global dead burned magnesia capacity based on magnesite.
In developed economies, such as Japan, the USA and Western Europe, the magnesia capacity based on magnesite is estimated at just 0.7mtpy out of a world total of 10mtpy. However, around 80% of global synthetic magnesia capacity (estimated at almost 1mtpy) is located in these countries.
The Economics of Magnesium Compounds & Chemicals is available at 2100/US$4200/3675 from Roskill.
For further details, e-mail: info@roskill.co.uk
ENDS