Updated Dec 10, 2022 19:07

Clay Market in Malaysia

Market Overview
After four years of growth, the Malaysian clay market decreased by -% to $ in . Over the period under review, consumption, however, continues to indicate a relatively flat trend pattern. As a result, consumption attained the peak level of $, and then declined notably in the following year.

In value terms, clay production contracted to $ in estimated in export price. Over the period under review, production, however, recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in when the production volume increased by %. As a result, production attained the peak level of $, and then reduced in the following year.


Consumption
After two years of decline, consumption of clays increased by % to tons in . Over the period under review, consumption, however, saw a relatively flat trend pattern. As a result, consumption attained the peak volume of tons. From 2018 to , the growth of the consumption failed to regain momentum.

The value of the clay market in Malaysia reached $ in , therefore, remained relatively stable 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 saw a relatively flat trend pattern. As a result, consumption reached the peak level of $. From to , the growth of the market remained at a lower figure.


Consumption by Type
Fireclay ( tons), kaolin and kaolinic clays ( tons) and bentonite ( tons) were the main products of clay consumption in Malaysia, together accounting for % of the total volume.

From 2007 to , the most notable rate of growth in terms of consumption, amongst the main consumed products, was attained by bentonite (with a CAGR of +%), while consumption for the other products experienced mixed trend patterns.

In value terms, fireclay ($) led the market, alone. The second position in the ranking was held by kaolin and kaolinic clays ($). It was followed by clays for construction and industrial use.

From 2007 to , the average annual rate of growth in terms of the value of fireclay markets amounted to +%. With regard to the other consumed products, the following average annual rates of growth were recorded: kaolin and kaolinic clays (-% per year) and clays for construction and industrial use (+% per year).


Market Forecast
Driven by rising demand for clay in Malaysia, the market is expected to start an upward consumption trend over the next eight-year period. The performance of the market is forecast to increase slightly, 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
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
Malaysia remains a net importer of clay; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a trade deficit of tons, which was equal to $. Those figures reflect the fact that neither imports nor exports don’t dominate the trade balance, and the country may export not only the product manufactured domestically, but also re-export some previously imported goods.