Caustic Calcined Magnesite Market Trends

Growth Drivers

• Growing Demand for Caustic Calcined Magnesite in Fertilizers – Caustic calcined magnesite is used in fertilizers since it has a vital role to play in the production of synthesis of chlorophyll that is important to enhance the quality of plants. Caustic calcined magnesite can be applied on acidified soil which can accelerate the growth of the plants. For instance, in 2019, approximately 150 million metric tons of nitrogen fertilizers were consumed across the globe. In a similar year, 45 million metric tons of phosphorus pentoxide fertilizer were consumed worldwide.

• Rising Sales and Production Volume of Cattle Feed - Caustic calcined magnesite is also used in higher amounts in the production of cattle feed magnesium is an advantageous component in the diet of cattle. For instance, it was projected that around 1 billion tons of animal feed are produced every year across the globe. Meanwhile, in the United States, approximately 250 million tons of pet food are produced annually. 

• Increasing Utilization of Caustic Calcined Magnesite in Cement Production - Caustic calcined magnesite is used in cement production owing to its micro-expansion effect and stable hydration. It also compensates for the shrinkage of cement for a prolonged period. The largest producer of cement in China produced approximately 2 billion metric tons in 2022 while in India, around 350 million metric tons of cement were produced in a similar period.

• Growing Urbanization and Industrialization to Boost the Production of Cement – Cement is one of the major applications of caustic calcined magnesite, hence, the growth of the market is interlinked with the growth of cement production. cement is the most essential component used in the construction of buildings which is estimated to rise on the back of rapid urbanization and industrialization. For instance, manufacturing production was projected to be growing by nearly 7% in 2021 across the globe.

• Rising Utilization in the Pharmaceutical Industry - Caustic calcined magnesite is used in pharmaceutical additive production such as basic magnesium carbonate, magnesium acetate, and magnesium stearate. The revenue generated by the pharma sector was evaluated to be approximately USD 1.5 trillion in 2021 across the globe.

Challenges

• Volatility in the Prices of Raw Materials - The raw material of caustic calcined magnesite is quite expensive which is estimated to hamper the market growth over the forecast period.
• Disrupted Supply-Chain Owing to COVID-19
• Environmental Hazards Associated with Caustic Calcined Magnesite