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Kaolinitic Clays Market in Iran

Market Overview
For the fourteenth year in a row, the Iranian kaolinitic clays market recorded growth in sales value, which increased by % to $ in . In general, the total consumption indicated a remarkable increase from 2007 to : its value increased at an average annual rate of +% over the last thirteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption increased by +% against 2007 indices. Over the period under review, the market reached the maximum level in and is expected to retain growth in the near future.

In value terms, kaolinitic clays production totaled $ in estimated in export price. Over the period under review, the total production indicated prominent growth from 2007 to : its value increased at an average annual rate of +% over the last thirteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, production decreased by -% against 2017 indices. The most prominent rate of growth was recorded in 2008 with an increase of %. Iran production peaked at $ in 2017; however, from 2018 to , production remained at a lower figure.


Consumption
In , approx. tons of kaolinitic clays (ball and plastic clays) were consumed in Iran; remaining constant against the previous year. Over the period under review, the total consumption indicated pronounced growth from 2007 to : its volume increased at an average annual rate of +% over the last fifteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption decreased by % against 2019 indices. Iran consumption peaked in and is likely to see steady growth in the immediate term.

The size of the kaolinitic clays market in Iran rose modestly 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 recorded a strong expansion. Iran consumption peaked in and is likely to continue growth in the immediate term.


Market Forecast
Driven by increasing demand for kaolinitic clays in Iran, 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 Iran 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 Iran 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
Iran remains a net exporter of kaolinitic clays; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.