Dolomite Market

Market Overview

The global dolomite market size was valued at USD 2.46 billion in 2021 and is expected to reach USD 3.46 billion in 2030 growing at a compound annual growth rate (CAGR) of 3.85% from 2022 to 2030.

Dolomite is an anhydrous carbonate mineral that is formed of calcium magnesium carbonate and has the chemical formula CaMg (CO3)2. It has a high concentration of calcium carbonate as well as magnesium. It is a component that may be found in rocks. Sedimentary and metamorphic rocks make up most of their composition. Because of its brittle and compact character, it finds widespread use in the building industry. Because dolomite possesses characteristics such as strong refractoriness and higher thermodynamic stability, it is possible to employ it in the production of refractive furnaces. It is anticipated that increase in the number of applications in horticulture, particle detectors, magnesium oxide, and iron smelting would drive the expansion of the market. Dolomite is also utilized in the manufacturing of float glass, which is yet another application for the mineral. The dolomite market share is anticipated to expand over the next few years on account of the expansion of the building industry.

Market Dynamics

Global Dolomite Market Drivers

• The market will be driven by rising demand from the construction industry

The mineral powder made from dolomite is making significant inroads into the market share of the building sector. It is utilized in the manufacturing of steel, which is one of the most important components of buildings, as well as cement. It is calcined to make cement, in addition to having a role as an aggregate in the creation of concrete. According to the Cement Manufacturers Association, the global consumption of cement was over 4,000 Mn Tons in 2017. Dolomite, which is a significant component in the manufacturing of cement, is gaining enormous traction in markets throughout the world as a result of this.

The demand for the product is also increasing in other kinds and applications, such as residential and commercial buildings, where it is employed in the manufacturing of concrete and cement. One example of this may be seen in the sentence "The demand for the product is also increasing." In addition, it is utilized in the production of a variety of building goods, such as sealants, putties, caulk, asphalt roofing shingles, and tiles, to name a few. It is anticipated that this would further boost the demand for this product in the context of the worldwide market.

• Rising steel industry demand will support market growth

The primary application for dolomite in the production of steel and iron is as a slag flux, which helps remove impurities from the raw materials. After going through the calcination process, the powder is put to use as refractory lining for open-hearth steel furnaces. In addition, mini-steel mills require this product in order to fulfill their fettling and refractory needs. According to an analysis conducted by the International Stainless-Steel Forum, China will maintain its position as the leader in both the production and consumption of steel. Currently, China is responsible for around 51% of the production of stainless steel. Due to the fact that dolomite is an essential component in the production of steel, it is anticipated that the expansion of the steel industry in the Asia Pacific, particularly in China and East Asia, would be the primary factor driving the market.

Global Dolomite Market Restraints

• Market restriction due to dolomite exposure consequences

Lead is an impurity that sometimes occurs in dolomite minerals, and it sometimes remains in the powder after the mineral is processed. If such a powder were added to fertilizers or animal feed, it might potentially pollute the ground, as well as induce lead poisoning in both people and animals. Lead poisoning can result in a variety of acute side symptoms, including abdominal pain, headache, nausea, vomiting, and diarrhea, in addition to exhaustion. In addition, some of the long-term negative effects include difficulty with learning, attention deficit disorder, hyperactive behavior, antisocial behavior, and neurological issues. As a result, these adverse consequences, which are brought on by exposure to polluted dolomite dust, serve as the principal barrier to the widespread usage of the substance.

Regional Analysis

In 2019, Asia Pacific owned the greatest share of the market, which was over 38%. The rising output of refractories is helping to drive up product demand in the region within the iron and steel sector. The emergence of covid-19 had an effect on industrial activity, especially given the lockdown that was imposed. Despite the relaxation of limitations, industries are concentrating their efforts on restarting their activities.

When compared to other nations, China, which is a significant user of dolomite, is picking up the pace with which it is resuming its activities. For instance, the Henan Association of Refractories reports that the output of refractories in Henan climbed to 2.62 kilotons in April-May 2020. This is a 66% increase in comparison to the production during the first three months of 2020. Despite the widespread spread of COVID-19, this is a promising indicator that the market will continue to thrive in the nation.

In addition, there has been a growing emphasis on expanding the production of glass for the purpose of providing the pharmaceuticals sector with the covid-19 vaccine, which is predicted to drive demand for the product. For instance, Gerresheimer India has declared that they would be able to triple their production capacity for tubular glass by the end of the year 2020, and they will be able to double their production capacity for molded vials by the end of the year 2021.

Because of the high levels of production of refractories, cement, and glass in the area, North America held the second-highest revenue share in 2019. Because of the region's importance to the refractory industry, major companies in the industry are implementing tactical strategies in an effort to bolster their standing in the regional market. For instance, RHI Magnesita completed the acquisition of Missouri Refractories in February 2020 with the intention of bolstering its presence in North America.

Segmental Analysis

By End Use Analysis

Iron and steel were the most important end-use industry in 2019, accounting for more than 62% of the total market share. It is anticipated that it will continue to hold the lead for the duration of the projected period as a result of the growing demand for steel in a variety of end-use applications. As a refractory material, dolomite is utilized in the lining of steelmaking converters, opening hearth furnaces, and the walls of electric furnaces.

In response to the ever-increasing demand for refractory materials, industry participants have increased their manufacturing capacity. For instance, RHI Magnesita made an announcement in June 2018 that it would be making an investment of 20 million Euros (approximately 23.5 million USD) to expand its operations at its dolomite site in China. This investment was made to assist in addressing global pressures in the supply of raw materials to the refractory industry.

Despite this, the high demand for refractories experienced a major decline in the year 2020 as a direct result of the Covid-19 epidemic. The spread of the virus forced the businesses to stop their production activities, which had a significant influence on the supply chain of the dolomite market share. This had a negative effect on the sales of market participants who were linked with the value chain.

A further important sector of the market, glass and ceramics, is predicted to have a compound annual growth rate (CAGR) of 4.4% in terms of sales over the course of the forecast year. Dolomite is an important raw material in the manufacturing of glass because it protects the glass from the chemical erosion that can be caused by water and air, it improves the flexibility of colored glass, and it also raises the glass's strength. The expansion of this sector will be driven by an increase in the demand for glass, which is used in the production of vials for various medications and vaccines.

As the phase of final testing for covid-19 vaccines approaches, pharma manufacturers and governments throughout the world are competing to find suitable packaging for the long-term storage of vaccine doses. For instance, in July of 2020, SiO2 Materials Science, a company that specializes in the packaging of pharmaceuticals, made public its intention to invest USD 163 million in the expansion of its packaging facility in Auburn, Alabama, in the United States. It is anticipated that increase in the manufacture of glass containers would be profitable for markets all over the world.

By Product Analysis

In 2019, the calcined product sector was the most important one, accounting for more than 39% of the total. Calcination is the process that transforms minerals like calcium carbonate and magnesium into calcined dolomite. These minerals are the building blocks for calcined dolomite. In the iron and steel sector, where it is employed in refractory lining protectors and scorifiers, it plays an important part in the production process. In addition to this, it has use in agriculture as a soil conditioner and in the treatment of water.

Another important sub-category of sintered dolomite products on the market is sintered dolomite. This material is essential for the production of bricks used in the LD converter liner because of the high refractoriness it possesses. Because it is created by heating raw dolomite to temperatures greater than 1,650 degrees Celsius in order to achieve maximum bulk-specific density and strong hydration resistance, the product is sometimes referred to as dead burnt dolomite.

Over the course of the time covered by this prediction, it is projected that growing investments in the steel sector would be lucrative for product demand. For instance, the Ministry of Steel of the Indian Union plans to make a cumulative investment of USD 70 billion into the eastern region of the country to establish an integrated steel hub. This is because the region possesses significant reserves of iron ore, coking coal, chromite, bauxite, and dolomite, in addition to the presence of major ports.

Recent Developments

• A significant provider of calcium carbonates in India, Vimal Microns Ltd., sold its calcium carbonate and dolomite business to Imerys in February 2018. Imerys' position in India is anticipated to grow as a result of this transaction.
• Imerys purchased Micron-Ita, a manufacturer of micronized ground calcium carbonates for polymer applications, in November 2017. Micron-Ita is situated in Brazil. By introducing new market applications to the company's portfolio, the purchase will increase its market position in Brazil. The company will be merged with Imerys' carbonates division, which is a component of the business group for energy solutions & specialty.