By Paul Ploumis (ScrapMonster Author)
August 05, 2016 08:46:37 AM
SEATTLE (Scrap Monster): The latest research report released by Technavio predicts 5% CAGR growth to global non-ferrous metals market during the period from 2016 to 2020. The report titled “Global Non-ferrous Metals Market 2016-2020” provides analysis and forecasts for various market segments and different geographical regions.
The report discusses the major drivers influencing the market growth and the challenges faced by the vendors and the market as a whole. It also examines key emerging trends and their influence on current and future market scenarios and segments the market based on the geographical regions-America, APAC and EMEA.
The report analyzes the global non-ferrous metals market on three main product categories:
a) Copper
b) Lead
c) Aluminum
The other product categories featured in the report include tin, nickel, titanium, and zinc.
According to the report, global copper market volumes are expected to grow at a CAGR of over 5% to touch 38 million metric tons by 2020. The growth will be mainly on account of increased production by various existing plants across the world. The new and enhanced capacities in China and Africa will further boost the production volumes during this period. The main categories of products that may witness significant demand rise include copper wires, tubes and other copper products used in electrical and plumbing applications. The study report states that refined copper usage across the globe has surged higher by over 300% during the past 50 years.
The report notes that Lead is primarily used for manufacturing batteries used in automobiles, electric cars, and electric bicycles. The increasing demand for lead-acid batteries in vehicles has boosted the demand for lead in the US. The global lead market volume is expected to reach 15 million metric tons by 2020, growing at a CAGR of more than 5%. The demand growth will be led by increased intake of lead by Chinese automotive and electric bike industry. In addition, increased use of batteries by information technology and telecommunications sector will further boost the demand for lead.
The total shipment by global aluminum market is expected to rise from 70.37 million metric tons in 2015 to 88.97 million metric tons by 2020, growing at a CAGR of nearly 5%. As per the report, China accounts for 44% of the global market demand on account of strong demand from manufacturing sector. However, the Chinese demand growth has witnessed marginal drop in recent years, mainly due to duties imposed by partner countries and closure of domestic aluminum smelters in the country.
The sharp rise in energy costs posts big challenge to the industry. For instance studies show that energy costs constitutes 35% of the total aluminum production costs. The energy cost per metric ton of aluminum produced in China is nearly $900. The costs are comparatively lower at $350 per metric ton in the Middle East and in Canada. The rising cost has led to closure of many smelters during the past several years. The global non-ferrous metals producers are likely to pass on the higher production costs to downstream products, which in turn may compress vendors’ margins on these products.
The Technavio report also spotlights on the top vendors in the global non-ferrous metals industry including Alcoa, BHP Billiton, Glencore, Hindalco-Novelis, Rio Tinto, Rusal and Vale.
About Technavio
Founded in 2003 and headquartered in London, UK, Technavio has offices across North America, Europe, and Asia. Technavio is a leading market research company with global coverage. It provides research and analysis on emerging market trends to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
