by The aluminum deoxidizer market comprises products that are added to aluminum during the smelting and casting processes to remove dissolved oxygen and prevent formation of alumina inclusions. Aluminum deoxidizers help improve the quality, mechanical properties and castability of aluminum. Some commonly used aluminum deoxidizers include master alloys of calcium-silicon or strontium and refactory grades of beryllium or titanium. The growing automotive industry is one of the key consumers of aluminum and a rise in aluminum usage in vehicles is expected to drive the demand for aluminum deoxidizers over the forecast period.
The Global aluminum deoxidizer market is estimated to be valued at US$ 3.13 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the aluminum deoxidizer market are Almatis GmbH, AluChem, Inc., Motim Electrocorundum Ltd., READE Advanced Materials, Zibo Honghe Chemical Co., Ltd., Henan HengXin Industrial & Mineral Products Co., Ltd., Prince Minerals LLC, HAIHUI Group Co., Ltd., Gongyi City Meiqi Industry & Trade Co., Ltd., Xinzheng Chengxin Carbon Co., Ltd.,Henan Junsheng Refractories Limited, Luoyang Zhongsen Refractory Co., Limited, Jiaozuo BeiYuan Chemical Co., Ltd., Gongyi City Xianke Water Supply Material Co., Ltd., Zibo Jiuchen Industry & Trade Co., Ltd.
The growing demand for aluminum from various end-use industries such as automotive, construction, packaging is expected to drive the aluminum deoxidizer market during the forecast period. Aluminum finds wide usage in the automotive industry for manufacturing automobile parts due to its light weight and corrosion resistance properties.
Key players are expanding their production facilities globally especially in the Asia Pacific and Middle East & Africa region to cater to the growing demand for aluminum deoxidizers from these regions. For instance, in 2021, Gongyi City Meiqi Industry & Trade Co., Ltd expanded its production capacity of aluminum deoxidizers in China.
Market key trends
Major trends influencing the aluminum deoxidizer market include development of new master alloys as substitutes for beryllium-based deoxidizers. Beryllium is toxic in nature and strict environmental regulations have encouraged players to develop beryllium-free deoxidizers. For example, in 2019, Prince Minerals LLC launched its new master alloy Sratlite, which is a strontium-based aluminum deoxidizer that can replace beryllium in various aluminum alloys. Owing to favorable properties, strontium-based and calcium-based aluminum deoxidizers are expected to witness significant demand over the forecast period.
Porter’s Analysis
- Threat of new entrants: Low capital requirements make entry easy.
- Bargaining power of buyers: Large number of buyers results in lower bargaining power.
- Bargaining power of suppliers: Suppliers have lower bargaining power due to availability of substitutes.
- Threat of new substitutes: Substitutes like sodium silicate pose threats.
- Competitive rivalry: Intense competition results in lower profit margins.
Geographical regions with high market concentration:
The Asia Pacific region accounts for the largest share in the global aluminum deoxidizer market in terms of value. China dominates the market owing to presence of a large production base and availability of raw materials in the region.
Fastest growing geographical region:
North America is expected to witness the highest CAGR during the forecast period. Increasing demand from construction and automotive industries is driving the market in the region. Supportive government policies are also encouraging aluminum production in the US and Canada.
