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The global Base Metals Market is estimated to be valued at US$ 751.30 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Base metals include metals such as aluminum, copper, lead, nickel, tin, titanium, zinc, and more. They have high conductivity, workability, and corrosion resistance which makes them ideal for various applications across industries such as building and construction, automotive, electrical and electronics, industrial machinery. The demand for base metals is driven by its necessity in production of essential items used in daily lives. For instance, copper is used in wiring and electronics; zinc and aluminum provides corrosion protection in vehicles bodies and machinery.
Market key trends:
One of the key trends in the Base metals market is rising demand from steel production industry. Steel contains on average about 98% iron and 1-2% other alloying elements which includes base metals like chromium, manganese, nickel, molybdenum, vanadium and copper. The steel industry consumes a large portion of global copper, nickel, chromium and other base metal production. With rising investments in infrastructure development and improving economic conditions globally, the demand for steel is projected to rise substantially. This will have a rub-off effect on the demand and consumption of base metals in steel making over the forecast period.
Porter’s Analysis
Threat of new entrants: The base metals market requires high capital investment in mining operations and infrastructure which acts as a barrier for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and differentiated products from existing players.
Bargaining power of suppliers: Major mining companies have significant control over global reserves which gives them strong bargaining power over buyers.
Threat of new substitutes: Threat of substitution is low as base metals have distinct material properties and few direct substitutes available.
Competitive rivalry: The base metals market is highly competitive with presence of numerous international players continuously competing on the basis of pricing and quality.
Key Takeaways
The global base metals market is expected to witness high growth, exhibiting CAGR of 4.0% over the forecast period, due to increasing investments in infrastructure development across emerging economies. The market size for 2023 is estimated to be US$ 751.30 Bn.
Regional analysis: Asia Pacific dominates the global market, with China being the largest consumer as well as producer. Rapid urbanization and growth of manufacturing sector in China and India is fuelling the demand. North America is also a major market supported by strong automotive and construction industries in the US and Canada.
Key players: Key players operating in the base metals market are McMoRan Copper and Gold, Rio Tinto, Teck Resources, and Nyrstar. McMoRan Copper and Gold is one of the largest producer of molybdenum and one of the largest private landowners in Louisiana and Gulf of Mexico. Rio Tinto is a leading global mining and metals company producing copper, aluminum, iron ore and uranium.
