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Kaolinitic Clays Market in Indonesia

Market Overview
For the fifth year in a row, the Indonesian kaolinitic clays market recorded growth in sales value, which increased by % to $ in . The market value increased at an average annual rate of +% over the period from 2007 to ; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. As a result, consumption reached the peak level and is likely to continue growth in the immediate term.

In value terms, kaolinitic clays production dropped to $ in estimated in export price. The total output value increased at an average annual rate of +% from 2007 to ; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2014 with an increase of % against the previous year. Over the period under review, production hit record highs at $ in 2010; however, from 2011 to , production stood at a somewhat lower figure.


Consumption
In , consumption of kaolinitic clays (ball and plastic clays) increased by less than % to tons, rising for the twelfth consecutive year after three years of decline. The total consumption volume increased at an average annual rate of +% from 2007 to ; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. Indonesia consumption peaked in and is likely to see steady growth in the near future.

The size of the kaolinitic clays market in Indonesia amounted to $ in , leveling off at 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). In general, the total consumption indicated a measured increase from 2007 to : its value increased at an average annual rate of +% over the last fifteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption increased by +% against 2014 indices. Over the period under review, the market hit record highs in and is expected to retain growth in years to come.


Market Forecast
Driven by increasing demand for kaolinitic clays in Indonesia, 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
Over the period under review, the share of imports in terms of total kaolinitic clays consumption in Indonesia was relatively small in physical terms, fluctuating under an % figure. In value terms the share of imports also stood at a low figure, which means that the Indonesia kaolinitic clays market is largely supplied by domestic manufacturers. 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
Indonesia 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 $.