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[Sep 2005]
US Refractory Demand to Reach US$2.3 Billion in 2009
Over the past several decades, there has been a massive rationalisation and consolidation in the US refractories industry. In addition to the forces typically associated with industry consolidation, the refractories industry has also been buffeted by declining consumption per unit of output in most markets - but especially in the steel industry. However, this process has largely exhausted itself and consumers are unlikely to become significantly more efficient users of refractories for the foreseeable future. Despite what many industries would view as modest prospects, the outlook for the surviving refractory producers is brighter than the industry has experienced in recent memory. These and other trends are presented in 'Refractories', a new study from The Freedonia Group Inc (Cleveland, OH, USA).
According to the study, US refractory demand is projected to increase by 1% annually to reach US$2.3 billion in 2009, continuing a strong turnaround which began late in 2003. Gains will be supported by both the improved economic fundamentals going forward and, particularly, the new-found stability in iron and steel following that industry's collapse in late 1997.
Among refractory forms, demand for preformed shapes and certain monolithics will see the strongest gains going forward while from a materials perspective, both clay and non-clay materials will perform near the industry average. However, among both clay and non-clay refractories, the switch to better performing products will continue, with the best opportunities expected for zircon and zirconia and silicon carbide refractories among non-clay refractories and high alumina clays in that segment. Despite the positive outlook, adds the study, most refractory materials will not recover to 1999 levels until well after 2009.
'Refractories' has just been published and runs to 281 pages. The study is available at a cost of US$4,200 direct from The Freedonia Group.
www.freedoniagroup.com
ENDS