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Kaolinitic Clays Market in Hungary

Market Overview
For the eighth year in a row, the Hungarian kaolinitic clays market recorded growth in sales value, which increased by % to $ in . Overall, consumption continues to indicate a significant expansion. Over the period under review, the market attained the peak level in and is expected to retain growth in the immediate term.

In value terms, kaolinitic clays production shrank rapidly to $ in estimated in export price. In general, production, however, recorded a significant decline. The most prominent rate of growth was recorded in 2010 when the production volume increased by %. Hungary production peaked at $ in 2007; however, from 2008 to , production remained at a lower figure.


Consumption
Kaolinitic clays consumption in Hungary reached tons in , with an increase of % compared with figures. In general, consumption saw a significant increase. Over the period under review, consumption attained the peak volume in and is likely to see steady growth in the immediate term.

The revenue of the kaolinitic clays market in Hungary rose to $ in , surging by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption posted significant growth. Hungary consumption peaked in and is expected to retain growth in the immediate term.


Market Forecast
Driven by increasing demand for kaolinitic clays in Hungary, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Affected by an intensive growth in domestic production, which will gradually displace imported products from the market, the share of imports decreased from % in 2007 to % in . Hungary domestic supply is expected to continue its growth. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Hungary remains a net importer of kaolinitic clays; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.