 |
 |
||||||
[January 2007]
UK Refractory Products - Market Development Report
After researching the UK Refractory Products Market Development and taking into account various other factors, the following major conclusions can be drawn from the new report published by Market & Business Development Ltd (Manchester, England):Market Review 2002–2006
The UK market for refractory products is believed to have increased by 5% to £434.3 million, representing the highest level recorded within the review period. Growth has been recorded in each year of the review period culminating in an estimated 17% increase in nominal terms compared with 2002. Sales growth is believed to have moderated over the review period, reflecting a number of factors affecting the overall industry. These include increases in raw material prices, increase in energy prices and varying levels of capital expenditure in sectors such as steel, cement, glass and petrochemicals and this, in turn, is influenced by economic conditions.Market Forecast 2007–2011
The UK market for refractory products is anticipated to demonstrate growth throughout the five-year forecast period up to 2011, albeit at modest levels. The value of the market is projected to reach £446.9 million at 2006 prices in 2011. Annual growth rates are not expected to exceed 1% in real terms. Overall, real term growth of 3% is anticipated compared with 2006. Stronger growth is likely to be hindered by restricted investment levels in key end use industries.Furthermore, the market for refractory products is likely to continue to be influenced by a number of trends, which have already affected the market development. Monolithic products are expected to further gain market share at the expense of traditional bricks. Additionally, in terms of volume, the market is expected to continue to decline, as research into raw materials and product design will produce increasingly durable and lightweight refractory products.
Annualised Increases Predicted for Siliceous Earth Products Between 2006 and 2010 Sales of siliceous earth products are projected to increase in each year between 2006 and 2010. In 2011 however, a marginal decline is projected to take the market to £48.3 million at 2006 prices. Overall, real term growth of 20% is anticipated compared with 2002.
Sales of Constructional Products Containing >50% of MgO, CaO or Cr2O3 to Reach £71.5 Million in 2011 (at 2006 Prices) Sales of constructional products containing more than 50% of MgO, CaO or Cr2O3 are projected to decline in the first two years of the forecast period. However, the trend is expected to be reversed in 2009 onwards with the value of the market anticipated to reach £71.5 million at 2006 prices. Overall, real term growth of 11% is expected compared with 2006.
Overall Real Term Decline of 3% Estimated for Constructional Products With >50% Alumina and/or Silica. The market for constructional products with more than 50% alumina and/or silica is expected to decline over the majority of the forecast period. MBD project that the value of the market is not likely to exceed £85 million at 2006 prices. Overall sales are forecast to decline by 3% in real terms compared with 2006.
Sales of Other Constructional Products to Decline to £55.9 Million in 2011 (at 2006 Prices) A strong real term growth of 18% is estimated for other constructional products in 2007. Growth is forecast to be consolidated in 2008, albeit by a moderate 1% in real terms. However, the market is projected to contract in each of the remaining years of the forecast period to an estimated £55.9 million at 2006 prices in 2011. Despite the declines, real term growth of almost 17% is anticipated compared with 2006.
Annualised Declines Forecast for Cements, Mortars & Concretes Market The market for cements, mortars and concretes is anticipated to decline year on year during the forecast period, culminating in a 9% decline in real terms between 2006 and 2011. The sector is expected to account for 13% of the total refractory products market throughout the five-year forecast period.
Value of Market for Other Products With >25% Graphite Anticipated to Decline to £47.8 Million in 2011 (at 2006 Prices) Sales of other products with more than 25% graphite are forecast to fluctuate during the five-year forecast period. Overall, demand is expected to decline by 14% in real terms between 2006 and 2011. In the latter year, the value of the market is estimated at £47.8 million at 2006 prices.
Demand for Other Products Containing >50% Alumina/Alumina & Silica to Increase by 4% During Forecast Period Demand for other products containing more than 50% alumina/alumina & silica is expected to increase year on year throughout the forecast period. Overall the sector is projected to increase by 4% between 2006 and 2011.
Sales of Other Refractory Products Expected to Increase by 12% in Real Terms In 2011, sales of other refractory products are forecast to reach £28.6 million at 2006 prices, representing 12% growth in real terms compared with 2006. The sector is expected to continue to represent the smallest sector of the refractory products market, accounting for an anticipated 6% of total sales in 2011.
UK Output of Refractory Products to be Increased by 1% in Real Terms Over Forecast Period UK production of refractory products is projected to increase moderately over the forecast period. Overall, output is expected to be increased by 1% in real terms between 2006 and 2011. Domestic production is expected to be hindered due to a number of factors which include recent increases in interest rates which are likely to dampen consumer and business confidence, and rises in energy and raw material prices.
Furthermore, the iron and steel industry is the largest consumer of refractory products in the UK and therefore the level of capital expenditure by this industry influences the UK output of refractory products significantly. UK manufacturers have developed products that have superior performance levels to the traditional refractory products in terms of durability, which is likely to restrict stronger growth in the market.
Year-on-Year Increases Anticipated for Imports of Refractory Products MBD expects imports of refractory products to increase throughout the five-year forecast period. Between 2006 and 2011, imports are projected to increase by 8% in real terms. Import growth is expected to exceed overall market development, as UK manufacturers continue to face increased competition from lower cost imports.
The UK Refractory Products Market Development Report is available from MBD at a price of £550.
www.mbdltd.co.uk
ENDS