The market for magnesite is expected to grow at a CAGR of more than 5% globally during the forecast period.
Increasing demand from construction, refractory industries are the reasons for the market growth.
The impact of COVID-19 results in lower mining activities and consumption of magnesite and other factors are expected to hinder the market growth.
Key Market Trends
Growing Demand for the Construction Industry
- Magnesite is an important mineral composed of magnesium carbonate (MgCO3) and is being used for many applications. Construction Industry is among the major users that has been using high-performance magnesia products for a long time.
- The applications of magnesite include industrial floors, building boards, abrasive stones, and grinding wheels, phosphate cement mortars, walls stabilization, road construction, drilling muds, ceramic tile production, and is also used as an additive in cement.
- The adoption of magnesite in the construction industry is mainly due to its properties. Some of the properties include excellent adhesion, self-leveling, fire resistance, high bonding strength, and high hydration reaction.
- The impact of COVID-19 resulted in lockdown of economic and industrial activities across the globe. Due to this, mining operations have been stopped globally. So, the demand and supply dyamics have changed and the supply of magnesia to the construction industry has decreased in 2020, compared to previous times.
- It is expected that post recovery of activities from lockdofrom, the demand for magnesite is likely to recover from new construction projects in the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific is expected to dominate the global market owing to the highly developed construction and chemical sectors in China, coupled with the continuous investments done in the region to develop the agriculture segment through the years.
- A large percentage of magnesite is being used in the refractory industries. Hence, the presence of magnesite at the time of making steel plays a major role.
- The growing construction market in Asia-Pacific has been increasing the demand for ceramics from residential as well as industrial sectors. Rising road construction activities in developing regions further escalate the demand for magnesite in recent times.
- According to the US Geological Survey, China is the largest producer of magnesite and has produced around 19,000 metric tons in 2019. Agriculture (fertilizers), chemical, construction, industrial, refractory are some of the end-user industries that have been consuming magnesite for different applications in the country.
- However, the recent COVID-19 pandemic, which originated from China, has tremendously impacted every country's economy with trade disruptions. This resulted in less consumption of magnesite due to shut down of various end-user industries in the Asia-Pacific region, in 2020.
- Post-COVID-19 recovery, the market is likely to grow for the rest of the forecast period, majorly owing to the expansion of chemical, agriculture, and construction industries develop in the region.
The magnesite market is partially consolidated in nature with a few major players dominating a significant portion of the market. Some of the major companies are Grecian Magnesite, RHI Magnesita N.V., Sibelco Australia Limited, Magnezit, and Baymag, amongst others.
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