Current Development Status of Refractory Materials Market in 2024

Refractory materials are a type of inorganic non-metal materials with a refractoriness not lower than 1580°C. Refractory materials are used in high-temperature processes in industries such as steel, non-ferrous metals, building materials, chemicals, power, environmental protection, and aerospace. They serve as important foundations and supporting materials for the implementation of new processes and technologies in all high-temperature industries, playing a crucial role in improving the quality, variety development, production, and energy conservation and emission reduction of high-temperature industrial products. The rapid development of high-temperature industries such as steel, non-ferrous metals, and petrochemicals, along with advancements in key equipment and technologies, has greatly driven technological innovation and industrial development in China's refractory materials sector. 

China has become the world's largest producer, consumer, and exporter of refractory materials and refractory raw materials, holding a significant position in the international refractory materials field. Although China's refractory materials industry entered a phase of rapid development in the 21st century, in recent years, under the backdrop of intensified national environmental protection efforts, the overall production of refractory materials in China has shown a downward trend. From 2014 to 2017, the production of refractory materials in China decreased annually from 27.9715 million tons to 22.925 million tons. After 2017, driven by continuous favorable policies in the refractory materials industry and the growth of downstream crude steel production, the production of refractory materials gradually rebounded. From 2017 to 2020, China's refractory materials production increased from 22.925 million tons to 24.78 million tons. However, in 2021, production once again declined, with China's refractory materials production reaching approximately 24.027 million tons, a year-on-year decrease of approximately 3.04%. China is both a major producer and consumer of refractory materials. According to statistics, in 2022, China's total output of refractory materials was 23.01 million tons, a year-on-year decrease of 4.23%. In terms of the production of major refractory products, the production of dense shaped refractory products was 12.611 million tons, a year-on-year decrease of 4.50%; the production of thermal insulation refractory products was 567,800 tons, a year-on-year decrease of 6.89%; and the production of unshaped refractory products was 9.8311 million tons, a year-on-year decrease of 3.73%. 

China has ranked as the world's largest producer of refractory materials for several consecutive years, with its production accounting for over 60% of the global refractory materials production. Under the background of supply-side reforms, the demand for refractory materials continues to adjust. Although downstream industries such as steel continue to reduce capacity, coupled with the extension of refractory materials lifespan leading to a decrease in unit consumption, it is estimated that the annualized production will still be maintained at over 20 million tons. As a major exporter of refractory materials, benefiting from the overseas economic recovery and the simultaneous increase in quantity and price due to inflation, China's total export trade volume of refractory raw materials and products reached 4.554 billion US dollars in 2021, a year-on-year increase of 54.39%. The domestic refractory materials industry is a billion-dollar revenue industry, but the industry landscape is relatively dispersed. In recent years, with the intensification of market competition and the accelerated merger and reorganization of downstream steel enterprises in China, large steel companies have become more receptive to the overall contracting model. This has led to a new development process of joint reorganization in China's refractory materials industry. 

With the advancement of China's economic transformation and the promotion of industry policies such as energy conservation and emission reduction and the compression of backward production capacity, the growth rate of high-temperature industries such as steel, non-ferrous metals, and building materials has slowed down, indirectly guiding the development direction of refractory materials. In recent years, the overall market size of China's refractory materials industry has grown. As of 2022, the market size was approximately 171.798 billion yuan. 

The refractory materials industry is a fully competitive industry and is influenced by downstream steel industries and the geographical distribution of major raw materials, showing a certain regional concentration. China's major refractory materials production enterprises are distributed in regions such as Liaoning, Henan, Shandong, Shanxi, Jiangsu, and Zhejiang. China has numerous refractory material enterprises, with around 2000 refractory product and raw material companies included in the statistics of the refractory material industry association. Additionally, there are still many small and medium-sized refractory material enterprises not accounted for in the statistics. The refractory material industry in China exhibits a high degree of marketization, low industry concentration, and small, decentralized enterprise sizes. 

The quality and performance of refractory materials are crucial for the stable operation of high-temperature industries. With industrial development and technological progress, refractory materials are continuously evolving and innovating. Future refractory materials need to possess higher performance and lower costs to meet market demands. Meanwhile, with the increasing environmental awareness, the environmental performance of refractory materials has become an important research direction. 

In terms of downstream applications of refractory materials in China, the steel industry has the most extensive usage, accounting for approximately 65% of the market share. Therefore, the development of refractory materials in China is greatly influenced by the development of the steel industry. Amid the carbon peaking and carbon neutrality goals and the increasing prominence of national energy conservation and environmental protection themes, industrial energy conservation is one of the key areas for fostering and developing China's energy conservation and environmental protection industries at the current stage. It is expected that the growth of China's traditional high-temperature industrial market will gradually slow down, thereby affecting the development of the refractory materials industry in China. Nevertheless, this situation creates favorable opportunities for technological transformation and structural adjustment in China's high-temperature industries, making energy-saving and environmentally friendly refractory materials the development opportunity for China's refractory materials industry in the future.