Prices for chemical igniters are expected to increase due to the continuous increase of demand following economic recovery and rising prices of chemical inputs
Los Angeles, CA (PRWEB) April 09, 2014
Chemical igniters have a buyer power score of 2.1 out of 5, which reflects a low availability of substitutes, rigid pricing structure and increasing demand, and thus lower buyer negotiating power.
“Buyers can choose from many types of igniters; while some offer more cost-effective pricing, others provide advantages in precision and reliability,” says IBISWorld business research analyst Pierre Dessertenne. Additionally, buyers should also consider purchasing services and other products relating to the effective use of igniters and explosive materials as they have been proven to improve planning and execution of blasts. As a result, the selection process should always involve those who will use the igniters, such as blast engineers and designers.
“Due to boosted demand from the mining industry following the economic recovery, prices have been rising since 2010,” says Dessertenne. Many suppliers had exited the industry or consolidated with larger manufacturers due to the economic downturn in 2008 and 2009, which increased market share concentration and supplier control over prices.
Igniters requires several key inputs, including nonorganic chemicals and nonferrous metals, which have been steadily rising in price over the past three years and are expected to continue rising in the future. Input purchases represent the largest part of suppliers' cost structure, and consequently are the biggest determinant of price.
Because input costs are volatile, manufacturers often pass on higher prices to buyers in order to maintain profit margins. Consequently, buyers will have difficulty locking in prices for igniters; however, buyers can ensure a steady supply of igniters by entering into long-term purchase commitments. Commitments will ensure priority over available supply and make suppliers produce or stock the quantity of igniters required by the buyer as specified in the purchase commitment. Buyers might be able to negotiate a percentage discount when entering long-term and large volume purchase commitments. Major vendors include Orica Limited, Incitec Pivot Limited, Austin Power and Maxam North American Inc. For more information, visit IBISWorld’s Chemical Igniters procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of chemical igniters. Igniter products include blasting caps, detonators, fuses, boosters and initiators. Igniter suppliers provide a range of accessories to many industries requiring the burning, deflagration or detonation of various materials. This report excludes propellants, blasting agents and explosives not considered detonators.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.