Graphite/magnesium compounds: Refractory output is reduced by 30% in Henan province with winter closures

A new round of environmental closures has begun across China’s Henan province which has introduced production limits to manufacturers from mid-November to mid-March next year. The limits are a bid to reduce emissions during the wither months when pollution levels worsen from winter heating. Almost 600 manufacturers are expected to be affected, including around 384 refractory companies, 70 foundry producers and additional manufacturers of brickworks, cement, ceramics, recycled non-ferrous metals, steel, and electrolytic aluminium.

Roskill view: 

The halt on production will dent the rise of the refractories industry which had been seeing output recover following a prolonged period of stagnation. Roskill forecasts global refractory production to increase by around 2%py in 2018 to more than 35.8Mt, following three previous years of decline. Output had previously peaked at more than 40.9Mt in 2014. The winter closures will have a negative impact on demand for raw material graphite and magnesia which are widely used in the manufacture of refractories; graphite is also used in foundry applications and elsewhere in steel production.

Roskill’s Natural & Synthetic Graphite: Global Industry, Markets & Outlook report was published in July 2018. Click here to download the brochure and sample pages or to access further information.
To discuss the graphite market with Roskill, contact Suzanne Shaw:
suzanne@roskill.com

Roskill’s latest Magnesium Compounds: Global Industry, Markets & Outlook report was published in August 2018. Click here to download the brochure and sample pages or to access further information. To discuss the magnesium compounds market with Roskill, contact Alison Saxby: alison@roskill.com