1 Global Waelz Oxide Market Size (Value) and CAGR (2024-2033)
In 2024, the global Waelz Oxide market is projected to reach a value of USD 1419.76 million, with a Compound Annual Growth Rate (CAGR) of 7.8% from 2024 to 2033.
Waelz Oxide, derived from the Waelz process, is a byproduct of steelmaking consisting primarily of zinc and lead oxides, used extensively in the production of zinc metal and zinc compounds.
This market’s growth is anticipated to be influenced by the increasing demand for zinc in various industries, including construction, automotive, and electronics, where its corrosion-resistant properties are highly valued.
Figure Global Waelz Oxide Market Size (M USD) and CAGR 2024-2033
2 Waelz Oxide Market Growth Drivers and Restraints
The Waelz Oxide market is influenced by a multitude of factors that either propel or hinder its growth. Key drivers include the burgeoning steel industry, which generates a substantial amount of EAF dust, the primary raw material for Waelz Oxide production. The growing demand for zinc in various applications, coupled with environmental concerns over mining, positions Waelz Oxide as a sustainable alternative, reducing the pressure on natural resources.
However, the market faces challenges such as high initial investment costs for setting up Waelz kilns and the immature technology for EAF dust recovery in many countries, which restricts the market’s potential. Additionally, the market is sensitive to fluctuations in raw material prices and global economic conditions, which can impact the feasibility of Waelz Oxide production.
3 Waelz Oxide Market Porter’s Five Forces Analysis
The Porter’s Five Forces analysis provides a strategic framework for understanding the competitive dynamics of the Waelz Oxide market.
Threat of New Entrants: The barrier to entry in the Waelz Oxide market is relatively high due to the significant capital investment required for setting up the Waelz kiln technology and the need for specialized knowledge to operate it. Additionally, stringent environmental regulations add to the complexity of market entry, thus protecting existing players from new competition.
Bargaining Power of Suppliers: Suppliers of EAF dust, a by-product of steel production, have limited bargaining power. This is because the dust is a waste product that steel manufacturers are often eager to sell at a low cost to reduce disposal expenses. The Waelz Oxide industry offers a recycling solution, reducing the environmental impact and disposal costs for steel producers.
Bargaining Power of Buyers: The buyers, primarily zinc smelters and chemical plants, wield considerable power due to their limited number and the specific quality requirements they have for Waelz Oxide. They can influence prices and demand higher standards, affecting the profitability of Waelz Oxide producers.
Threat of Substitutes: The threat of substitutes is significant for Waelz Oxide, as it competes with primary zinc ores and other zinc concentrates used in the production of zinc metal and compounds. The price and availability of these substitutes can significantly impact the demand for Waelz Oxide.
Industry Rivalry: The Waelz Oxide market experiences intense rivalry among established players, who are constantly innovating and expanding to maintain market share. The competition is characterized by technological advancements, price competition, and the pursuit of environmental sustainability, which are crucial for differentiating products in this market.
4 Global Waelz Oxide Market Size and Share by Type in 2024
The global Waelz Oxide market is segmented into three main types: Zn Oxides Concentrates, Pb Oxides Concentrates, and Others. Each type serves distinct purposes and has unique characteristics within the market.
Zn Oxides Concentrates: This type, expected to generate revenue of USD 1035.38 million in 2024, is the dominant segment. Zn Oxides Concentrates are primarily used in the production of zinc metal and zinc compounds due to their high zinc content. They are a crucial component in the galvanizing industry and are used in a variety of applications, including galvanizing steel sheets for corrosion resistance.
Pb Oxides Concentrates: With a forecasted revenue of USD 148.49 million in 2024, Pb Oxides Concentrates are used for lead recovery. This type is essential for companies involved in lead smelting and has applications in battery manufacturing and other lead-intensive industries.
Others: This category, projected to reach USD 235.89 million in 2024, includes other components recovered from Waelz Oxide, such as cadmium and silver.
Table Global Waelz Oxide Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
Zn Oxides Concentrates | 1035.38 | 72.93% |
Pb Oxides Concentrates | 148.49 | 10.46% |
Others | 235.89 | 16.62% |
5 Global Waelz Oxide Market Size and Share by Application in 2024
The Waelz Oxide market is segmented by application into Smelters and Other Chemical Plants, with each segment playing a distinct role in the industry’s growth.
Smelters: This application segment is projected to lead the market with a forecasted revenue of USD 1192.76 million in 2024. Smelters utilize Waelz Oxide as a key raw material for the production of metallic zinc. The smelting process involves reducing and re-oxidizing the Waelz Oxide to extract zinc, highlighting the importance of this application in the global zinc supply chain.
Other Chemical Plants: This segment is expected to generate a revenue of USD 227.00 million in 2024. Other Chemical Plants use Waelz Oxide to produce a variety of chemical compounds, including zinc oxide and other zinc-based chemicals used in rubber, paint, and agriculture. The versatility of Waelz Oxide in chemical production makes this segment a significant contributor to the market’s diversity and growth.
Table Global Waelz Oxide Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
Smelters | 1192.76 | 84.01% |
Other Chemical Plants | 227.00 | 15.99% |
6 Global Waelz Oxide Market Size and Share by Region in 2024
The global Waelz Oxide market is characterized by diverse regional dynamics, with some regions exhibiting larger market sizes or faster growth rates. The year 2024 is expected to be a significant year for the market, with regions like Europe and the United States leading in terms of revenue generation.
Europe: With a forecasted revenue of USD 531.83 million in 2024, Europe is anticipated to be the largest market for Waelz Oxide. The region’s dominance can be attributed to its well-established steel and chemical industries, which generate a substantial amount of EAF dust, the primary raw material for Waelz Oxide. Additionally, Europe’s strict environmental regulations and focus on recycling and sustainability have fostered a conducive environment for the growth of the Waelz Oxide market.
United States: The United States is projected to generate a revenue of USD 437.40 million in 2024, making it another significant player in the global Waelz Oxide market. The country’s large steel production industry and the presence of leading Waelz Oxide producers contribute to its market size. The United States also has a strong focus on environmental protection and resource recovery, which supports the growth of the Waelz Oxide market.
China: Expected to generate a revenue of USD 155.59 million in 2024, China’s market is growing rapidly due to the country’s massive steel production and increasing emphasis on environmental sustainability. The Chinese government’s initiatives to reduce pollution and promote recycling have created a favorable environment for the Waelz Oxide industry.
Figure Global Waelz Oxide Market Share by Region in 2024
7 Major Players in Global Waelz Oxide Market
7.1 Befesa
Company Profile: Befesa, established in 1987 and headquartered in Luxembourg, is a leading provider of waste recycling services. The company specializes in the collection and recycling of steel dust and aluminum residues, offering industrial services and logistics.
Business Overview: Befesa operates mainly in Europe, Asia, and North America, focusing on the treatment of hazardous waste from secondary aluminum producers. The company has a strong presence in the Waelz Oxide market, leveraging its patented SDHL-Waelz oven process technology.
Product Process Step and Services: Befesa’s Waelz process involves the recycling of steel dust generated from electric arc furnaces. The process includes mixing and pelletizing raw materials, feeding them into the Waelz kiln, and recovering Waelz oxide through off-gas treatment facilities. The company’s plants also produce slag that can be used as a building material in the cement industry.
2024 Revenue and Gross Margin: In 2024, Befesa is projected to achieve a revenue of USD 495.82 million with a gross margin of 23.85%.
7.2 Grupo Promax
Company Profile: Founded in 1917 and headquartered in Mexico, Grupo Promax is a diversified industrial group with a focus on the production of plaster, drywall, construction materials, zinc derivatives, and recycled paper.
Business Overview: The company’s global presence is evident through its widespread market distribution. Grupo Promax has over 30 years of experience in recycling EAF steel dust and is known for its economic and environmentally sound Waelz Kiln process.
Product Process Step and Services: Grupo Promax’s Waelz Kiln process reclaims zinc and other metals from EAF dust. The company’s facility in Millport, Alabama, includes conditioning, blending, and pelletizing facilities, a Waelz Kiln, storage and loading facilities, and environmental control systems.
2024 Revenue and Gross Margin: Grupo Promax is expected to generate a revenue of USD 92.41 million in 2024, with a gross margin of 24.80%.
7.3 Recylex
Company Profile: Recylex S.A., headquartered in France, specializes in the recycling of lead, zinc, polypropylene, and the production of high-purity special metals. The company is a European expert in the circular economy, revitalizing waste and used materials to meet the demand for sustainable and responsible recycled raw materials.
Business Overview: Recylex’s market distribution is mainly in Europe, where it plays a crucial role in the recycling of steel dust from electric arc furnaces into Waelz oxide, contributing to the production of electrolytic zinc.
Product Process Step and Services: Recylex’s process involves the separation of zinc from other elements in steel dust through pyrometallurgical reactions. The company has been improving its process since 2004, with support from regional and European authorities, to enhance performance and environmental impact.
2024 Revenue and Gross Margin: Recylex is projected to achieve a revenue of USD 70.91 million in 2024, with a gross margin of 26.26%.
