Mining Chemicals Market Analysis
The global mining chemicals market is expected to witness spend growth of more than USD 9 billion between 2019-2024, with spend momentum accelerating at a CAGR of over 6%. This increasing procurement of mining chemicals will be primarily driven by mining companies that are targeting low-grade ores due to their abundance and the efficient recovery of minerals from such ores. The aging of mines and the increasing need for deep, surface-mining activities will create requirements of chemicals in the mining processes to extract high-quality ores. This is contributing to the demand growth in the mining chemicals market. Lithium-ion batteries are witnessing an exponential demand owing to their different applications, such as electric vehicles, consumer electronics, and solar energy units. To cater to this demand, mining companies are accelerating their activities of extracting lithium which is driving the demand growth in the mining chemicals market.
Top Spending Regions in the Mining Chemicals Market
While an exponential increase in metal mining activities will accelerate spend growth, stringent environmental regulations and decline in coal production will restrict the same in the mining chemicals market across geographies.
South America
The presence of abundant reserves of metals, such as copper, lithium, and gold, along with government support in the form of favorable legislation and regulatory frameworks is favoring metal mining activities in South America. This is driving an exponential demand in the mining chemicals market. Last year, Chile accounted for nearly 33% of global lithium output, and the country's lithium reserves accounted for nearly 50% of global reserves of the metal which brought considerable investments into the mining chemicals market in this region.
Europe
Mining activities are expected to slow down in Europe owing to the stringent environmental regulations and a decline in the domestic consumption of coal for energy production. The lack of government support is expected to lead to a slump in mining activities in the region. This slump in mining activities is expected to decelerate spend momentum in the mining chemicals market in Europe.
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What are the Key Price Trends in this Market?
- Forecasts of fluctuations in the prices of raw materials such as ammonia owing to the shortage in the supply of natural gas from which ammonia is synthesized, will impact the overall price structure in the mining chemicals market.
- The price of caustic soda which is a major chemical used in the treatment of mining wastewater is expected to increase owing to the hike in the price of sodium chloride that is the major raw material used in the manufacture of caustic soda. This will have an inflationary impact on the mining chemicals market price.
- Increase in crude oil prices will increase logistics costs borne by mining chemicals suppliers. Such an increase in expense will be ultimately compensated by buyers in the form of excess procurement spend in the mining chemicals market.
Download the free sample of this report to know what the key mining chemicals procurement best practices that you must adopt to address price dynamism in this market.
Insights into Mining Chemicals Supply Market
- Mining chemicals suppliers are focusing on widening their portfolios by investing in advanced technologies, such as mining robotics, improving safety while carrying out tasks like planting explosives as well as in specialized vehicles to deliver mining chemicals and in mine modeling software.
- Buyers will benefit by engaging with mining chemicals suppliers who are known to adopt automation and lean manufacturing techniques in their manufacturing processes. The adoption of lean manufacturing techniques can help suppliers to increase their plant productivity by up to 20%, which can help them in attaining greater economies of scale and thus, lower product prices for buyers.
- Global suppliers of mining chemicals enter into long-term supply contracts with vendors of raw materials such as ammonia to avoid the impact of fluctuations in prices of these commodities. For instance, a major Australian explosive supplier entered into a long-term supply contract with major chemical vendors in North America for the supply of ammonia for its regional operations. This, in turn, helped the company reduce its raw material costs and improve margins.
Insights into Some of the Leading Mining chemicals Suppliers
Volatile mining chemicals price trends coupled with sub-optimal supplier partnership is resulting in declining ROI of a majority of buyers in this market. In view of this, the mining chemicals market procurement intelligence report has enlisted the top suppliers, best selection criteria, and negotiation strategies for such suppliers. These insights will aid buyers to take a collaborative approach with the mining chemicals suppliers to identify areas where they can optimize their procurement spend. The top mining chemicals suppliers highlighted in this report include:
- BASF SE
- Chevron Phillips Chemical Co. LLC
- Exxon Mobil Corp.
- SABIC
- Solvay SA
- Akzo Nobel NV
Criteria to select suppliers in this dynamic mining chemicals market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
