Updated Jan 28, 2021 17:12

Kaolinitic Clays Market in Brazil

Market Overview
In , the Brazilian kaolinitic clays market increased by % to $, rising for the fourth year in a row after two years of decline. Over the period under review, the total consumption indicated a buoyant expansion 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, consumption increased by +% against 2016 indices. Over the period under review, the market attained the peak level in and is likely to see steady growth in years to come.

In value terms, kaolinitic clays production surged to $ in estimated in export price. The total output value increased at an average annual rate of +% over the period from 2007 to ; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed throughout the analyzed period. As a result, production attained the peak level and is likely to continue growth in the immediate term.


Consumption
For the sixteenth year in a row, Brazil recorded growth in consumption of kaolinitic clays (ball and plastic clays), which increased by % to tons in . Over the period under review, the total consumption indicated a moderate expansion 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 increased by +% against 2007 indices. Kaolinitic clays consumption peaked in and is likely to continue growth in years to come.

The size of the kaolinitic clays market in Brazil stood at $ in , increasing 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). In general, consumption showed a strong increase. Over the period under review, the market reached the peak level in and is likely to see gradual growth in years to come.


Market Forecast
Driven by increasing demand for kaolinitic clays in Brazil, 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, imports of kaolinitic clays in Brazil were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for kaolinitic clays. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. 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
Brazil 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.