Apr. 25, 2023 - Although the global economy declined overall and crude steel production fell by 4.2% in 2022, sales performance for well-known refractories giants worldwide showed double-digit growth. What about 2023? This article analyzes the market environment for the refractory industry in 2023 through the outlook of industry giants.

Comment from Vesuvious: “Steel and Foundry markets have remained weak at the beginning of 2023, and we anticipate the rate of recovery to be slow and only to improve later in the year. We will also be impacted in the first half by a negative fixed cost absorption related to the reduction of our inventory level and by the impact of the cyber incident. Despite this, we are confident that our 2023 results will be in-line with our expectations. Looking beyond 2023, we expect the positive impact of our investment in R&D, long-term growth initiatives, and development of our capacity in fast growing regions, will result in accelerated growth and profitability.”

Comment from RHI Magnesita: “The company expects volatility and uncertainty across global markets to persist in 2023. With a decline in construction activity which will affect steel, cement, lime, non-ferrous metals and glass demand globally, RHI Magnesita anticipates lower sales volumes in 2023. However, demand softness will be offset by continued strong growth in India. Costs are expected to remain broadly flat as higher energy and labour costs offset lower sea freight and purchased raw materials. The Company will also benefit from additional earnings from new acquisitions and cost savings from its strategic initiatives.

In 2023, the Company will continue to focus on growing its business especially in the attractive markets of China, India and Turkey. Supported by the earnings from acquisitions and the cost savings from strategic initiatives, RHI Magnesita is well positioned for the coming years.”

Comment from Saint-Gobain: “In an uncertain geopolitical and macroeconomic environment, Saint-Gobain expects a moderate slowdown in its markets in 2023, with contrasting trends: a decline in new construction in certain regions but good resilience overall in renovation:

Europe: resilience in renovation while new construction slows;

Americas: slowdown in new construction, partly mitigated by demand on the renovation market;

Asia-Pacific: good growth in most countries;

High Performance Solutions: good momentum supported by ongoing improvement in automotive.”

The World Steel Association’s short-term forecast for 2023-24 in April shows that “Global steel demand will increase by 2.3% in 2023, with China’s steel demand increasing by 2%. In 2024, global steel demand will increase by 1.7%, of which China's steel demand will be flat.”

Overall, the mainstream prediction for the market environment in 2023 is relatively neutral. Demand remains weak, recovery is very slow, inflation and energy prices are returning to normal, raw material costs are showing a downward trend, and different market shows different trends. However, major enterprises have corresponding plans and strategies to ensure organic growth in performance.