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[May 2007]
The UK Refractory Products Market Development Report
Market & Business Development Ltd (Manchester, England) has published its latest refractory report, The UK Refractory Products Market Development Report. Considering the research and taking into account various other, factors the following major conclusions can be drawn from MBD's report.
Market Review 2002–2006
MBD believes the UK market for refractory products declined during the majority of the review period. In value terms, the market peaked in 2003 at £401.9 million, representing an increase of 7% during the year. However, this has since been negated by declines in subsequent years, taking the market to an estimated £378.8 million in 2006. MBD believes that the decline in sales reflect a number of factors which include increases in raw material prices, rising energy prices and varying levels of capital expenditure in sectors such as steel, cement, glass and petrochemicals. Despite the declining sales an overall increase of almost 1% is estimated compared with 2002.Market Forecast 2007–2011
With the exception of 2007, MBD believes the UK market for refractory products will demonstrate growth throughout the remainder of the forecast period up to 2011, albeit at modest levels, with annual growth rates not expected to exceed 1% in real terms. The value of the market is anticipated to reach £384.4 million at 2006 prices in 2011, equivalent to overall, real term growth of 1% 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 expected to be influenced by a number of trends, which have already affected the market development particularly, monolithic products anticipated to further gain market share at the expense of traditional bricks. In addition, in terms of volume, the market is forecast to continue to decline, as research into raw materials and product design will produce increasingly durable and lightweight refractory products.Value of Siliceous Earth Products
Sales of siliceous earth products are projected to increase from £40.6 million in 2006 to an anticipated £41.5 million at 2006 prices in 2011. Overall, real term growth of 2% is anticipated between 2006 and 2011. The sector is expected to account for 11% of the total market over the majority of the forecast period.Sales of Constructional Products Containing >50% of MgO, CaO or Cr2O3 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 £61.5 million at 2006 prices by 2011. Overall, real term growth of 11% is expected compared with 2006.
Market for Constructional Products with >50% Alumina and/or Silica MBD believes the market for constructional products with more than 50% alumina and/or silica is projected to decline from £85.3 million in 2006 to £71.5 million at 2006 prices in 2011.
Other Constructional Products
Sales of 'other constructional' products is projected to fluctuate over the forecast period although an overall decline is expected in comparison with 2006. By 2011, the value of the sector is expected to reach £48 million at 2006 prices, representing a projected decline of 3% compared with 2006.Cements, Mortars & Concretes
The market for cements, mortars and concretes is anticipated to decline year on year during the forecast period, culminating in a 14% 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.Other Products with >25%Graphite
Sales of 'other products with more than 25% graphite' are forecast to fluctuate during the forecast period. Overall, MBD believes demand will decline by 6% in real terms between 2006 and 2011. In the latter year, the value of the sector is projected to reach £41.1 million at 2006 prices.Other Products Containing >50% Alumina/Alumina & Silica
Demand for 'other products containing more than 50% alumina/alumina & silica ' is anticipated to increase year-on-year throughout the forecast period to a peak value of £48 million at 2006 prices in 2011. The sector is projected to almost double in value terms compared with 2006.Miscellaneous
Sales of 'other' refractory products is anticipated to increase by 1% in real terms between 2006 and 2011 to £24.6 million at 2006 prices in the latter year. 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.www.mbdltd.co.uk
ENDS