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Press Release
2008/02/25

US DEMAND FOR REFRACTORY PRODUCTS TO REACH $2.5 BILLION IN 2011

US demand for refractory products is forecast to advance 1.8 percent per annum to $2.5 billion in 2011, accelerating from the 2001-2006 period. Gains will be driven by strong growth in the production of nonmetallic mineral products, particularly cement, as nonresidential and nonbuilding construction expenditures are expected to accelerate. Growth will also be supported by the increasing use of better performing, more expensive refractories, which will bolster demand in value terms. Advances will be somewhat restrained by slowing steel production growth and a weak outlook for fabricated metals. Shipments of refractories are projected to rise 1.3 percent per year, a slower pace than demand, and the US is expected to slip into a trade deficit in refractory products by 2011. These and other trends are presented in Refractories, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Among refractory forms, demand for bricks and shapes is expected to advance more rapidly than for monolithics, as preformed shapes continue to be increasingly utilized due to the performance advantages they offer, such as reduced heat-up time. However, demand for monolithic bonding and other mortars is projected to grow at an above-average pace, as the use of these products provides an economic advantage by extending the time-span between brick relinings. Clay refractories are expected to outperform nonclay refractories through 2011, benefiting from the increasing use of higher-value materials such as high-alumina due to their superior performance attributes.

Refractory demand from nonmanufacturing industries will grow at the fastest pace through 2011, supported by the increased use of stone ovens in restaurants, as well as the growing popularity of outdoor fireplaces. The largest dollar gains are expected in the nonmetallic mineral products market, which will increase more in value terms than the considerably larger metal products market, despite its smaller size. Gains in this market will be spurred by strong growth in the production of ceramics, cement and other mineral products, fueling demand for associated refractories.

US REFRACTORY SUPPLY & DEMAND
(million dollars)
% Annual Growth
Item 2001 2006 2011 2001- 2006 006- 2011
Refractory Demand 2148 2305 2525 1.4 1.8
Bricks & Shapes 1149 1370 1565 3.6 2.7
Monolithics 626 615 630 -0.4 0.5
Other Forms 373 320 330 -3.0 0.6
net exports 80 35 35 - -
Refractory Shipments 2228 2340 2490 1.0 1.3

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[Report]
Refractories

Published by : The Freedonia Group
Pub Time: 2008/02
Product Code : fd62660

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