Magnesite Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• The impact of the COVID-19 pandemic results in lower mining activities. The shutdown of the mining sector due to social distancing and other factors highly reduced the mineral's production levels, which, as a result, were unable to meet the demand. This factor constrained the overall mining sector and, thus, negatively impacted the overall market in terms of production. However, in the post-COVID-19 recovery, the market will likely grow for the rest of the forecast period, majorly owing to the expansion of the chemical, agriculture, and construction industries worldwide.
• In the short term, the increasing demand from construction and refractory industries is driving the market growth.
• However, stringent government regulations imposed on the production of magnesite are responsible for the hindered growth of the market.
• Using reliable and consistent renewable energy sources for mining provides an opportunity for the market's growth.
• In addition, Asia-Pacific is likely to dominate the overall market due to rising demand from the construction sector.

Magnesite Market Trends

Growing Demand for the Construction Industry

• Magnesite is an important mineral composed of magnesium carbonate (MgCO3) and is used for many applications. The construction industry is among the major users using high-performance magnesia products for a long time.
• The applications of magnesite include industrial floors, building boards, abrasive stones, grinding wheels, phosphate cement mortars, wall stabilization, road construction, drilling muds, and ceramic tile production, and it is also used as an additive in cement.
• Magnesite is an essential industrial mineral widely used in refractory, ceramic, steel, cement, glass, fertilizer, and drug industries. Growing demand for the construction industry is the major driving factor in the growth of the market studied.
• According to the United States Census Bureau, the value of private construction in 2022 was USD 1,429.2 billion, 11.7% above the USD 1,279.5 billion spent in 2021. Residential construction in 2022 was USD 899.1 billion, 13.3% above the 2021 figure of USD 793.7 billion, nonresidential construction was USD 530.1 billion, and 9.1% above USD 485.8 billion in 2021.
• The adoption of magnesite in the construction industry is mainly due to its properties. Some properties include excellent adhesion, self-leveling, fire resistance, high bonding strength, and high hydration reaction.
• The impact of COVID-19 resulted in the global lockdown of economic and industrial activities. Due to this, mining operations have been stopped globally. So, the demand and supply dynamics and magnesia's supply to the construction industry have changed.
• Moreover, the construction sector's performance is projected to be greatly affected due to the impact on the liquidity of money due to the affected income of a relatively larger section of society. This factor is expected to affect the market studied.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific is expected to dominate the global market owing to China's highly developed construction and chemical sectors, coupled with continuous investments in the region to develop the agriculture segment through the years.
• A large percentage of magnesite is being used in the refractory industries. Growing steel industry in China, India, and South Korea to open new avenues for the magnesite market over the coming years.
• The growing construction market in Asia-Pacific is increasing the demand for ceramics from the residential and industrial sectors. Rising road construction activities in developing regions have recently escalated the demand for magnesite.
• According to the US Geological Survey, China is the leading producer of magnesite worldwide, producing around 21,000 metric tons from mines in 2021. Brazil was the second leading magnesite producer that year, with an estimated two million metric tons production volume. Agriculture (fertilizers), chemical, construction, industrial, and refractory are some of the end-user industries that have been major consumers of magnesite for different applications in the country.
• In the Asia-Pacific region, even after most of the construction projects' resumption, the construction sector's growth is experiencing slower growth. It is due to the need for more labor, transportation, and supply of raw materials. This factor also became the major reason, constraining the market studies' growth in consumption.
• Post-COVID-19 recovery, the market is likely to grow for the rest of the forecast period, mainly owing to the expansion of the region's chemical, agriculture, and construction industries.

Magnesite Market Competitor Analysis

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