Explosives: A Global Strategic Business Report
San Jose, California (PRWEB) May 31, 2013
Follow us on LinkedIn - Fortunes of the explosives industry are closely linked with the metal/mineral extraction industry. More than 75% of the explosives production is consumed in mining operations alone across the globe. While the market has entered a stabilization phase in some countries, it is picking up momentum in other economies with availability of extensive mineral deposits for excavation and rebound in construction and quarrying activity. Developing economies such as China, India, and South Africa are expected to drive growth of the explosives market with rise in mining, construction as well as manufacturing industries. In addition, civil works such as tunnel constructions and other development projects in emerging markets are expected to drive market growth.
Currently, lower commodity prices post a concern for explosives industry, as major mining companies focus on lower operating costs and tightening operating cash flows. Given that explosives constitute 10%-15% of the mining costs, pricing of explosives is expected to be under pressure for reducing operating costs by mining companies. Besides the fall in commodity prices, underperformance in North America amidst growing shift towards natural gas by power generation companies and continued weakness in West European markets continue to impact the demand for explosives in recent years.
In Australia, with the Ammonium Nitrate (AN) industry expected to face an oversupply situation, increased focus on cost containment by customers could bring in a change in market dynamics. However despite the volatile climate, long term drivers for the explosives industry remain intact. In North America with coal mining companies looking towards emerging economies, growth in the explosives market is expected to remain modest in near term from the mining sector, while the gains are expected to stem from the quarrying and construction markets.
With the regulatory authorities thrusting on safe blasting conditions at mining sites, companies are focusing on development of innovative blasting technologies that are safer, non-explosive and environment-friendly. Technology advancement in explosives is aimed at reducing mineral loss during excavation, greater control over rock fragmentation size and broken rock bulk density, and larger shot sizes without vibration impacts in underground mines. Electronic detonators, an emerging technology is gradually penetrating the explosives market. Africa represents the leading consumer of electronic detonators in the world followed by Australia, North America, and South America. Another key trend is towards deploying bulk emulsion explosives.
As stated by the new market research report on Explosives, Asia-Pacific represents the largest and fastest growing market for explosives worldwide. With the Chinese and Indian economies displaying strong demand, global players are venturing these markets to gain presence. Also demand for ammonium nitrate, a key component in explosive manufacture, is expected to increase significantly, as mining companies gear up to expand production in these economies. African mining industry is an active sector, with several Greenfield and Brownfield expansion projects in various stages of planning and implementation. South African market for explosives continues to remain strong, driven by the extensive mineral deposits available in the country.
Key players profiled in the report include AEL Mining Services Ltd., Austin Powder Company, Chemring Group PLC, ENAEX, EPC Groupe, Incitec Pivot Limited, MaxamCorp, S.A., NOF Corp., Orica Ltd., Sasol Limited, Solar Industries India Ltd., and TITANOBEL SAS, among others.
The research report titled “Explosives: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in Metric Tons and US$ for major geographic markets including the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Australia, and Rest of Asia-Pacific), Middle East/Africa, and Latin America (Brazil, Mexico, and Rest of Latin America). Product segments analyzed include Blasting Agents, Propellants, Pyrotechnics, and Others.
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Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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