Acid test: Strong import competition and falling domestic demand have constrained revenue

The Basic Inorganic Chemical Manufacturing industry's performance has been highly volatile over the past five years. Decreased demand from the Manufacturing and Mining divisions, and volatility in export markets have weighed on the industry's performance over the period. Nonetheless, industry revenue is projected to grow by an annualised 1.5% over the five years through 2018-19, driven by overall growth in exports. Subdued growth of 0.6% is expected in 2018-19, bringing industry revenue to an estimated $2.4 billion.Industry products form a vital part of Australia's chemical sector, providing important intermediate products used as basic chemicals in various industrial processes...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
1.5%
Forecast Growth 19-24
Profit
Employment
2,032
Businesses
76

Industry Threats & Opportunities

  • Local manufacturers are being pressured to substitute inorganic chemicals for organic chemicals
  • Substantial import competition and high local production costs have constrained profitability
  • Demand for basic inorganic chemicals is anticipated to continue decreasing over the next five years
  • Industry Report - Industry Locations Chapter

    Many small industry plants are located in Victoria and New South Wales, in line with the general geographic spread of the chemical manufacturing sector. Inorganic chemicals are used as inputs across other chemical processes, reflecting the intermediate nature of the industry's products. These two states are estimated to account for just over 70% of industry establishments in 2018-19.The location of firms operating in Australia's resources sector also determines the industry's general geographic spread. Several plants are located in Western Australia and target the resources sector. Companies operating in this state include Wesfarmers in Kwinana, Coogee in Kwinana and Kemerton, and Tronox in Kwinana. Wes...purchase to read more.

    Additional Insights for the Basic Inorganic Chemical Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Basic Inorganic Chemical Manufacturing are:

  • Having contracts that are favourable to the purchaser
  • Economies of scale
  • Production of goods currently favoured by the market
  • IBISWorld analysts also discuss how external factors such as Demand from mining and Demand from manufacturing in the Basic Inorganic Chemical Manufacturing industry impact industry performance..

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    What's in this report

    What is the Basic Inorganic Chemical Manufacturing Industry?

    Industry companies produce a variety of basic inorganic chemicals, which tend to be intermediate products used as basic chemicals in industrial processes or manufacturing products. Key industry products include inorganic dyes and pigments, sulphide, calcium chloride, acids, industrial salts, soda ash and chlor-alkali products.

    Industry Products
  • Inorganic or mineral colouring matter
  • Sodium cyanide
  • Ammonia products
  • Chlor-alkali products
  • Other inorganic chemicals
  • Inorganic acids
  • Aluminium hydroxide
  • Industry Activities
  • Inorganic acid production, including hydrochloric, hydrofluoric and sulphuric acids
  • Fluoride
  • Hydrogen peroxide production
  • Nitrite
  • Sodium, sodium bicarbonate and sodium hydroxide
  • Industrial salt
  • Inorganic dye or pigment, including zinc oxide and titanium dioxide pigments
  • Chlor-alkali product
  • Ammonium hydroxide
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from mining
  • Demand from manufacturing
  • Demand from gold and other non-ferrous metal processing
  • Trade-weighted index

  • Current Performance
  • Growth constraints
  • Volatile international markets
  • Production capacity
  • Environmental consequences
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand
  • Profit pressures
  • Changing operating environment
  • Environmental and regulatory developments
  • Table: Basic Inorganic Chemical Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Basic Inorganic Chemical Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Gold Ore Mining
  • Explosives Manufacturing
  • Soap and Cleaning Compound Manufacturing
  • Glass and Glass Product Manufacturing
  • Water Supply
  • Paint and Coatings Manufacturing

  • Key Selling Industries
  • Basic Organic Chemical Manufacturing
  • Fertiliser Manufacturing
  • Industrial Gas Manufacturing
  • Mineral Sand Mining
  • Soap and Cleaning Compound Manufacturing
  • Synthetic Resin and Synthetic Rubber Manufacturing

  • Products & Services
  • Inorganic or mineral colouring matter
  • Sodium cyanide
  • Aluminium hydroxide
  • Inorganic acids
  • Other inorganic chemicals
  • Ammonia products
  • Chlor-alkali products
  • Chart: Basic Inorganic Chemical Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Mining and metal processing firms
  • Manufacturing firms
  • Chart: Major Market Segmentation for the Basic Inorganic Chemical Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Utilities
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Basic Inorganic Chemical Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Basic Inorganic Chemical Manufacturing Industry

  • Industry Globalization
    Tronox Limited, Ixom Holdings Pty Limited, Wesfarmers Limited, Coogee Chemicals Pty Ltd, Orica Limited,
  • Table: Tronox Limited - financial performance
  • Table: Ixom Holdings Pty Limited - financial performance
  • Table: Wesfarmers Limited - financial performance
  • Table: Coogee Chemicals Pty Ltd - financial performance
  • Table: Orica Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Basic Inorganic Chemical Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Basic Inorganic Chemical Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Chlor-Alkali
  • Refers to the production of chlorine and sodium hydroxide (caustic soda).
  • Sodium Cyanide
  • An inorganic compound that is mainly used in gold mining. It is an inorganic salt that is derived from neutralisation reactions with weak acid hydrogen cyanide.
  • Titanium Dioxide Pigment
  • The most widely used white pigment due to its brightness and high refractive index. This pigment is used in paints, coatings, plastics, papers, inks, food and pharmaceuticals.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Basic Inorganic Chemical Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
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    This report on Basic Inorganic Chemical Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Basic Inorganic Chemical Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Basic Inorganic Chemical Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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