The global high purity base metals market size was valued at USD 331.78 billion in 2020 and is expected to reach USD 403.80 billion at a compound annual growth rate (CAGR) of 2.8% by 2027. Growing demand for high purity base metals from industries, such as consumer goods, electronics, transportation, and construction, is anticipated to augment market growth over the forecast period. The market witnessed a slight decline in 2019 owing to trade wars and the demand-supply gap. In addition, the emergence of the COVID-19 pandemic negatively impacted the market growth in 2020 as the virus outbreak disrupted the manufacturing, transportation, and demand from the end-use industries. Despite the obstructions caused by the pandemic, the demand for high purity base metals is expected to stabilize in the near future owing to their propelling demand from the end-use industries.
The U.S. is a significant market for high purity metals, considering the establishment of the end-use industries in the country. The country is a prominent consumer of high purity aluminum, especially for the defence industry, which utilizes the high purity base metal in aircraft, vehicles, and ammunition. However, the country is also amongst the adversely affected nations in the world due to the COVID-19 pandemic, which is expected to impact market growth.
The pandemic has severely impacted the production and supply of base metals, which is expected to negatively influence market growth. For instance, zinc has seen a major disruption, which can be attributed to the lockdown in Peru, a major producer of the metal. The situation is unfavorable in Chile as well, which is a major copper producer. Codelco, the worlds largest copper miner in Chile, had to shut down its Chuquicamata smelter and refinery post another workers death owing to coronavirus.
The transportation end-use segment held the largest revenue share of more than 29.0% in 2019. All major base metals in their pure state are largely being utilized in the automotive industry. Lead is a key raw material for batteries, which are largely used in the automotive, industrial, consumer goods, and electronic industries.
Batteries have been a key application segment of lead and shall now prove to be a vital source for the production of refined lead as well. Companies are engaged in recycling old batteries for manufacturing refined lead in order to fulfil accelerating consumer demand. For instance, in September 2020, Chunxing, a major producer of secondary lead, received approval from the Environmental Protection Agency of the Australian State of Victoria for the construction of a recycling plant. The plant is expected to recycle 50 kilotons of lead-acid batteries and produce 28 kilotons of refined lead per annum.
Aluminum was the largest product segment with a revenue share of more than 42.0% in 2019. High purity aluminum finds application in the high-tech industries that require good electrical conductivity and corrosion resistance in their products. In electronics, it is used in sputtering targets for semiconductor chips, in vacuum evaporation materials for thin-film applications, and in LED production as well.
The High Purity Base Metals market is segmented on the basis of product, end-use and region. By product the market is divided into Copper, Aluminum, Lead, and Zinc. By end-use the market is divided into Building & Construction, Industrial Machinery & Equipment, Consumer & General Products, Electrical & Electronics, Transportation, Others.
Asia Pacific dominated the global market and accounted for a volume share of more than 71.0% in 2019. The large share of the region is mainly attributed to China, which is the major consumer of base metals in the world. The growth of the developing economies of the region is also expected to contribute toward the demand for high-purity base metals in the coming years.
Growth of the end-use industries in India is a positive aspect for the market to flourish in Asia. Initiatives by the Indian government to promote manufacturing in the nation are expected to augment the production of high purity base metals in the country for satisfying consumer needs. For instance, in September 2020, Hindalco Industries signed a pact with Hindustan Copper Ltd. for the long-term purchase and sale of copper concentrates produced by the PSU.
Some prominent players in the global high purity base metals market include: Aluminum Corporation of China Limited, BHP, Boliden Group, Codelco, Hindalco Industries, KGHM PolskaMied S.A, Norsk Hydro ASA, Nyrstar, Rio Tinto, Rusal, Sumitomo Chemical.
The U.S. is a significant market for high purity metals, considering the establishment of the end-use industries in the country. The country is a prominent consumer of high purity aluminum, especially for the defence industry, which utilizes the high purity base metal in aircraft, vehicles, and ammunition. However, the country is also amongst the adversely affected nations in the world due to the COVID-19 pandemic, which is expected to impact market growth.
The pandemic has severely impacted the production and supply of base metals, which is expected to negatively influence market growth. For instance, zinc has seen a major disruption, which can be attributed to the lockdown in Peru, a major producer of the metal. The situation is unfavorable in Chile as well, which is a major copper producer. Codelco, the worlds largest copper miner in Chile, had to shut down its Chuquicamata smelter and refinery post another workers death owing to coronavirus.
The transportation end-use segment held the largest revenue share of more than 29.0% in 2019. All major base metals in their pure state are largely being utilized in the automotive industry. Lead is a key raw material for batteries, which are largely used in the automotive, industrial, consumer goods, and electronic industries.
Batteries have been a key application segment of lead and shall now prove to be a vital source for the production of refined lead as well. Companies are engaged in recycling old batteries for manufacturing refined lead in order to fulfil accelerating consumer demand. For instance, in September 2020, Chunxing, a major producer of secondary lead, received approval from the Environmental Protection Agency of the Australian State of Victoria for the construction of a recycling plant. The plant is expected to recycle 50 kilotons of lead-acid batteries and produce 28 kilotons of refined lead per annum.
Aluminum was the largest product segment with a revenue share of more than 42.0% in 2019. High purity aluminum finds application in the high-tech industries that require good electrical conductivity and corrosion resistance in their products. In electronics, it is used in sputtering targets for semiconductor chips, in vacuum evaporation materials for thin-film applications, and in LED production as well.
The High Purity Base Metals market is segmented on the basis of product, end-use and region. By product the market is divided into Copper, Aluminum, Lead, and Zinc. By end-use the market is divided into Building & Construction, Industrial Machinery & Equipment, Consumer & General Products, Electrical & Electronics, Transportation, Others.
Asia Pacific dominated the global market and accounted for a volume share of more than 71.0% in 2019. The large share of the region is mainly attributed to China, which is the major consumer of base metals in the world. The growth of the developing economies of the region is also expected to contribute toward the demand for high-purity base metals in the coming years.
Growth of the end-use industries in India is a positive aspect for the market to flourish in Asia. Initiatives by the Indian government to promote manufacturing in the nation are expected to augment the production of high purity base metals in the country for satisfying consumer needs. For instance, in September 2020, Hindalco Industries signed a pact with Hindustan Copper Ltd. for the long-term purchase and sale of copper concentrates produced by the PSU.
Some prominent players in the global high purity base metals market include: Aluminum Corporation of China Limited, BHP, Boliden Group, Codelco, Hindalco Industries, KGHM PolskaMied S.A, Norsk Hydro ASA, Nyrstar, Rio Tinto, Rusal, Sumitomo Chemical.
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