Salt in the wound: Declines in manufacturing have decreased demand for many chemicals

The Basic Inorganic Chemical Manufacturing industry forms a vital part of Australia's chemical sector, providing important intermediate products used as basic chemicals in various industrial processes. However, the industry is facing challenges as greater volumes of inorganic chemicals are being imported and the Manufacturing division continues to shrink.Demand for industry products has declined over the past five years, due to declines in the Manufacturing division. Facilities have closed in mature or declining industry product segments. Consequently, industry revenue is expected to fall at an annualised 2.1% over the five years through 2017-18, to total $2.1 more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The industry has increasingly relied on international markets as a source of revenue
  • Substantial import competition and high local production costs have affected profitability
  • Demand for basic inorganic chemicals is anticipated to increase over the next five years
  • Industry Report - Industry Analysis Chapter

    The Basic Inorganic Chemical Manufacturing industry has performed poorly over the past five years. The industry’s performance is determined by economic factors that influence downstream manufacturers and conditions specific to the chemical product sector. These factors vary, but can include the stability of foreign markets such as China and the production levels of Australian mining firms. A declining domestic manufacturing sector and increased import penetration from lower-cost countries have adversely affected the industry over the past five years. As a result, many Australian manufacturers have moved production offshore, removing key downstream markets for industry operators. Consequently, industry revenue is expected to decline at an annualised 2.1% o...purchase to read more.

    Additional Insights for the Basic Inorganic Chemical Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Basic Inorganic Chemical Manufacturing Industry 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 pigments and dyes
  • Sodium cyanide
  • Ammonia products
  • Chlor-alkali products
  • Other inorganic chemicals
  • Industrial salts
  • Inorganic acids
  • 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
  • Falling revenue and profitability
  • Volatile international market
  • Production capacity
  • Environmental consequences
  • Chart: Revenue Growth

  • Industry Outlook
  • Improved revenue performance
  • 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
  • Other inorganic chemicals
  • Inorganic pigments and dyes
  • Ammonia products
  • Sodium cyanide
  • Chlor-alkali products
  • Industrial salts
  • Inorganic acids
  • Chart: Basic Inorganic Chemical Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Mining and metal processing industries
  • Manufacturing sector
  • 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
  • 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
    Wesfarmers Limited, Coogee Chemicals Pty Ltd, Ixom Holdings Pty Limited,
  • Table: Wesfarmers Limited - financial performance
  • Table: Coogee Chemicals Pty Ltd - financial performance
  • Table: Ixom Holdings Pty 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
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ammonium Nitrate
  • A chemical compound predominantly used in agriculture as a high-nitrogen fertiliser.
  • 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.
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    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.

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    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
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