Weakening demand from China may constrain the industry's ability to expand revenue
New York, NY (PRWEB) March 28, 2015
The Copper, Nickel, Lead and Zinc Mining industry is heavily reliant on the market prices of the metals it produces. Canada is the ninth-largest producer of copper and the fifth-largest producer of nickel in the world. Therefore, the prices of these metals heavily influence the industry's performance. The industry also produces zinc and, to a lesser extent, lead. These minerals are key inputs into many products and demand for them is relatively strong. Despite strong demand, the global recession negatively impacted the industry's performance. In the five years to 2015, industry revenue is expected to expand. IBISWorld estimates that industry revenue will decline in 2015, as nickel and copper prices decline over the year.
“Though the industry supplies important metals for infrastructure construction and other vital problems and services, the recyclability of copper, most notably, ensures that there is a strong secondary market for the industry's products,” IBISWorld Economic Analyst James Crompton says in the updated report. Weakening demand from China is also anticipated to constrain the industry's ability to expand revenue. Nonetheless, exports have grown strongly in the five years to 2015, but this growth is expected to ease in the next five years. The number of industry establishments is expected to grow steadily in the five years to 2015, and this trend is expected to continue through 2020. The current oversupply of copper on global markets will likely lessen in the next five years, as downstream markets draw down stockpiles. However, demand is expected to remain relatively tepid in comparison with previous years, as China's rapid growth moderates.
In the five years to 2020, industry revenue is forecast to grow slowly. “Industry operators will continue to seek additional measures to reduce mine operation costs, effectively increasing profitability in the five years to 2020,” Crompton says in the updated report. Like other mining industries, companies in this industry must actively explore for or acquire mineral assets on a regular basis. Therefore, IBISWorld anticipates that industry operators will continue consolidation efforts to improve their production efficiency and expand their reserve bases.
For more information, visit IBISWorld’s Copper, Nickel, Lead & Zinc Mining in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry mines ores valued for their copper, nickel, lead or zinc content. Firms may covert mined ore into concentrates for further downstream processing.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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