Increasing production of cement to augment growth of the global mining chemicals market.

 

Raw materials such as cyanide, sulfuric acid, nitric acid, uranium, mercury, and lead are used for the manufacturing of mining chemicals. Increasing production of cement is expected to propel growth of the global mining chemicals market over the forecast period. For instance, according to International Energy Agency, 4.1 Gt of cement were produced globally in 2019. Production reached a high of 4.2 Gt in 2014 and has since remained at around 4.1 Gt.

Market Insights

Significant growth in the construction and infrastructure sector is expected to offer lucrative growth of the global mining chemicals market. For instance, according to the data released by the Associated General Contractors of America in January 2020, construction expenditure in the U.S. increased 4.1% from November 2018 to November 2019. Moreover, rapid urbanization is also expected to aid in growth of the global mining chemicals market. 

However, high cost of transportation and logistics of mining chemicals is expected to hinder growth of the global mining chemicals market. The market in Asia Pacific is driven by high production of gold. For instance, according to World Gold Council, at a country level, China was the largest producer in the world in 2019 and accounted for around 11 per cent of total global production in 2019.

The demand for mining chemicals is expected to decrease due to decline in the automotive sector. The emergence of Covid-19 has led to significant decrease in demand for automobiles. . For instance, according to the Society of Motor Manufacturers and Traders, the new car registrations in the U.K. decreased by 44% in March 2020 compared that in March 2019. In April 2020, Kia Motors announced that its South Korea-based contract manufacturer for compact vehicles has suspended production.

Competitive Analysis

Major players operating in the global mining chemicals market include, Ashland Inc., BASF SE, The Dow Chemical Company, Chevron Phillips Chemicals Company LP, Clariant AG, Cytec Industries, Nalco Company, Air Products and Chemicals, Inc., and AkzoNobel Performance Additives.

Major players operating in the global mining chemicals market are focused on adopting partnership strategies to enhance their market share. For instance, in May 2019, BASF entered an exclusive agreement with Quadra Chemicals Ltd., to present its mining solutions portfolio of products in Canada and Alaska.