The base metal mining market faced significant challenges during the COVID-19 epidemic due to various political, economic, and legal constraints imposed by nations worldwide. The demand for base metal mining experienced a decline in 2020, primarily because the construction, automotive, electrical, and electronics industries, which are major consumers of base metals such as zinc, copper, and aluminum, witnessed a slowdown in expansion. However, as we look ahead to the end of 2021 and beyond, there are promising signs of improvement in the market, driven by various factors that present new opportunities for growth.
𝐅𝐨𝐫 𝐌𝐨𝐫𝐞 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐈𝐧𝐬𝐢𝐠𝐡𝐭 𝐑𝐞𝐚𝐝: https://www.fairfieldmarketresearch.com/report/base-metal-mining-market
Base Metal Mining and the Automotive Industry
One of the key drivers of growth in the base metal mining market is the increasing demand from the automotive industry. The rise in popularity of electric vehicles (EVs) has significantly impacted the demand for base metals like copper, aluminum, and others. Copper wires, copper metals, and copper cathodes are in high demand due to their extensive use in the construction of electric vehicles. According to the International Energy Agency, global sales of electric vehicles reached 2.1 million units in 2019, and by 2020, the number of electric vehicles sold increased by 40% to 2.94 million units. This surge in electric vehicle sales has fueled the need for base metals, boosting the base metal mining market.
Base Metal Mining and the Electrical and Electronics Industry
The electrical and electronics sector is another major consumer of base metals, especially copper and aluminum. Copper is widely used for wiring and various electronic components, while aluminum's lightweight and conductive properties make it a preferred material for electronic devices. The Semiconductor Industry Association reported that global sales of semiconductors reached US$439 billion in 2020, a 6.5% increase from the previous year. With the steady growth of the semiconductor industry, the demand for base metals in this sector is expected to continue rising, driving further growth in the base metal mining market.
Challenges in the Base Metal Mining Market
Despite the opportunities for growth, the base metal mining market faces challenges, particularly concerning stringent regulations imposed on mining activities worldwide. Legal frameworks such as the National Environmental Policy Act (NEPA) in the United States and India's Mines & Minerals (Development and Regulation) Act 1957 (MMDR Act) set strict guidelines for mining operations, requiring thorough environmental impact assessments and compliance with conservation rules. Violation of these regulations can lead to legal actions and impede the growth of the base metal mining industry.
Leading Category: Aluminum in the Base Metal Mining Market
Among the various base metals, aluminum stands out as a leading category in the global base metal mining market. Its unique properties, including resistance to corrosion, lightweight nature, and high conductivity, make it a versatile material used in numerous applications, from kitchen appliances to construction projects. The International Aluminium Institute reported a substantial increase in global aluminum production in 2020, reaching 65,296 thousand metric tonnes. This continued demand for aluminum supports its position as a significant player in the base metal mining market.
Continued Surge in the Construction Category
The construction industry continues to dominate the base metal mining market and is expected to maintain its significant market share in the forecast period. The demand for base metals like aluminum, copper, and zinc in construction applications remains high, driven by urbanization, infrastructure development, and increased construction activities. The World Bank estimates that global spending in the construction industry reached US$11.9 trillion in 2020, showcasing the robust demand for base metals in this sector. As building and construction activities increase worldwide, the need for base metal mining will also experience substantial growth.
Asia Pacific: A Dominant Player in the Base Metal Mining Market
The Asia Pacific region leads the base metal mining market in terms of revenue share. The region's growing population, particularly in countries like China and India, contributes to the rising demand for base metals across various end-use industries, including building and construction, automotive, electrical, and electronics. For instance, China's aluminum production reached 37,337 thousand metric tonnes in 2020, while India produced 3.6 million tonnes of aluminum in the same year. The increasing production of base metals in the region reflects its growing reliance on key industries, fueling the demand for base metal mining.
Stable Revenue Growth in North America
North America is anticipated to experience stable revenue growth in the base metal mining market. The region benefits from a consistent demand for electric vehicles and boasts a plentiful supply of raw materials, contributing to market expansion. Additionally, the region's rapid infrastructure development, along with the growth of various end-user verticals like the building and construction industry, will further bolster market growth. Furthermore, the increase in the electronics industry's capacity will create additional opportunities for the base metal mining market to thrive in North America.
Competitive Landscape of the Global Base Metal Mining Market
The global base metal mining market features several key players competing for market share. Some prominent names in the industry include BHP, Freeport-McMoRan, Inc., Antofagasta PLC, CODELCO, Zijin Mining Group Co., Ltd., Norilsk Nickel, Vale, Aurubis, Glencore, and Anglo American. These companies play a crucial role in shaping the market and driving innovation in base metal mining operations.
Related Other Blogs:
https://www.vingle.net/posts/6537970
