Metal & Mining
The global base metal mining industry experienced robust growth during the last five years. It is expected to continue to grow, but at a reduced pace, to reach an estimated $305 billion in 2017 with a CAGR of 6.4% over the next five years. The base metals industry was greatly affected by a global drop in commodity prices in 2009, which resulted in sharp declines in many markets. Commodity prices, however, have recovered particularly copper, zinc, and nickel.
The base metal mining industry comprises the mining of base metals, which include copper, Aluminium, nickel, zinc, tin, and lead. Asia dominates this industry and represents more than 50% of the global base metal mining industry. A combination of factors such as growth in related complementary industries and governmental regulations, cyclical fluctuations in input prices, general economic conditions, and end-use markets is witnessed to affect the industry dynamics significantly.
Rising demand from power generation, shipbuilding, and consumer durables in addition to technological advancements and new product development at competitive prices will be the key factors for future market growth. Uncertainty in European debt issues, saturation in end-user markets such as automotive and construction in developed regions is likely to will slow down the growth rate during the forecast period.