Dolomite Market Size, Share & Trends Analysis Report By End-use (Construction, Iron & Steel), By Product (Agglomerates, Calcined, Sintered), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global dolomite market size was valued at USD 2.25 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.8% from 2020 to 2027. The market growth is attributed to the large-scale steel production across the world owing to its widespread applications. However, the product demand shall be sluggish at least for a couple of years on account of the COVID-19 pandemic. The COVID-19 pandemic has had a drastic impact on the global economy affecting the operations of almost all industries, including mining. The virus outbreak has propelled mining companies to suspend their operations, thereby, impacting the production of mineral. In addition, amidst this critical situation, the production activities of the end-use industries of the market including iron & steel, construction, glass, and others are also running at minimal capacity, which is anticipated to have a negative impact on the dolomite demand for 2020 to 2021.

The U.S. is a major consumer of dolomite in the world owing to the presence of established steel and glass manufacturers in the country. The country reported an increase of 1.6% from 2018 to 2019 in terms of crude steel production. However, dolomite demand shall decline in 2020 as the manufacturing activities have been suspended in the country owing to the coronavirus outbreak. The U.S. is one of the majorly hit countries in the world and reported 4.57 million cases in July 2020.

Dolomite is extensively used in refractory production that is catered to the steel industry. Refractory demand is increasing extensively owing to high consumer demand, which is propelling manufacturers to expand their production activities. For instance, in July 2020, RHI Magnesita announced about investment Euro 40 million (~USD 47.02 million) at its site in Hochfilzen, Tyrol, Austria. The project includes the construction of a tunnel that will avoid around 7,500 truck trips per annum in the future and the site will become a center of European dolomite production as the annual production is expected to increase to 200 kilotons from 10-60 kilotons. This is a positive sign for market growth.

The construction industry is another key end-use application for dolomite where it is used as a road base material, an aggregate, railroad ballast, and also in cement production. With the ease of lockdown restrictions, the construction activities are resuming at a slow pace, which is also a positive aspect of market growth. For example, from May 2020, by adhering to stringent sanitization measures and lockdown advisories, construction activities have resumed in some states of India including Telangana, Goa, Himachal Pradesh, and Karnataka.

Product Insights

Calcined was the largest product segment in 2019 and accounted for more than 39%. Calcined dolomite is obtained from minerals, such as calcium carbonate and magnesium, through the process of calcination. It plays a vital role in the iron & steel industry where it is used in refractory lining protectors and scorifiers. It is also used in agriculture as a soil conditioner and in water treatment.

Sintered dolomite is another significant product segment of the market. The product is known for its high refractoriness and is required in making bricks for LD converter lining. The product is also known as dead burned dolomite as it is produced by heating raw dolomite above 1,650 °C for achieving maximum bulk-specific density and high hydration resistance.

Increasing investments in the steel industry are anticipated to prove fruitful for product demand over the forecast period. For instance, the Indian Union Ministry of Steel intends a cumulative investment of USD 70 billion into the country’s eastern region for establishing an integrated steel hub, as it holds significant reserves of iron ore, coking coal, chromite, bauxite, and dolomite along with the presence of major ports.

End-use Insights

Iron & steel was the largest end-use segment in 2019 and held over 62% of the global share. It is expected to maintain its lead during the forecast period on account of increasing demand for steel in various end-use applications. Dolomite is used as a refractory material in steelmaking converter lining, opening hearth furnace, and electric furnace wall.

Increasing demand for refractory materials pushed market players to expand their production capacities. For example, in June 2018, RHI Magnesita announced about making an investment of Euro 20 million (~USD 23.5 million) to expand its operations at its dolomite site in China to help address global pressures in the supply of raw materials to the refractory industry.

The high demand for refractories, however, witnessed a significant drop in 2020 on account of the Covid-19 pandemic. The virus outbreak compelled the companies to shut down their manufacturing operations, which immensely affected the supply chain of the dolomite market, and had a negative impact on sales of market players associated with the value chain.

Glass & ceramics, another key segment of the market, is anticipated to register a CAGR of 4.4% in terms of revenue over the forecast period. Dolomite is a key raw material in glass production as it prevents chemical erosion due to water and atmosphere, enhances the plasticity of colored glass, and also increases its strength. The demand for glass is increasing to produce vials for medicines and vaccines, which will drive the segment growth.

As covid-19 vaccines move towards the final testing stage, drug makers and governments are in the race to secure packaging for storing the vaccine shots. For example, in July 2020, SiO2 Materials Science, a specialist in drug packaging announced its plan to shell out USD 163 million for expanding its packaging plant in Auburn, Alabama, the U.S. Increasing production of glass containers is expected to prove fruitful for the global market.

Regional Insights

Asia Pacific held the largest share of over 38% in 2019. The growth in refractories production is propelling the product demand in the region in the iron & steel industry. The covid-19 outbreak impacted the production activities considering the imposition of lockdown. Although, with ease in restrictions, industries are focusing on resuming their operations.

China a prominent consumer of dolomite is resuming its activities at a faster pace compared to other countries. For example, according to the Henan Association of Refractories, the refractories production in Henan increased to 2.62 Kilotons in April-May 2020, which is 66% higher compared to the first quarter of 2020. This is a positive sign for the market to flourish in the country despite the COVID-19 pandemic.

In addition, a rising focus on increasing the production of glass for serving the pharmaceuticals sector for the covid-19 vaccine is anticipated to propel product demand. For example, Gerresheimer India announced about tripling its capacity for tubular glass by the end of 2020 and doubling its capacity of molded vials by the end of 2021.

North America held the second-highest revenue share in 2019 on account of the high production of refractories, cement, and glass in the region. Considering the significance of the region in the refractory business, key players are making strategic moves to strengthen their position in the regional market. For example, in February 2020, RHI Magnesita acquired Missouri Refractories for strengthening its position in North America.

Key Companies & Market Share Insights

The presence of a large number of established players in the industry makes the market highly competitive in nature. Mergers and acquisitions and capacity expansions are the strategic initiatives adopted by most of the key companies to strengthen their position and gain a wider market share. For example, in May 2018, Mineração Belocal (a joint venture between Lhoist and Votorantim Cimento) acquired L-Imerys' Brazilian lime and dolomite business. Some of the prominent players in the dolomite market include:

• Calcinor

• Carmeuse

• Imerys

• Lhoist

• Omya AG

• RHI Magnesita

• Sibelco

• Vardar Dolomite

Dolomite Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global dolomite market report on the basis of product, end-use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Calcined

  • Sintered

  • Agglomerated

• End-use Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • Construction

  • Agriculture

  • Glass & Ceramics

  • Iron & Steel

  • Water Treatment

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • Turkey

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa