Published on : Oct 28, 2016
The competition between the existing players in the global mining chemicals market is intense owing to the presence of several regional and global players. In order to meet the requirements of end users, producers are focusing on production capacity expansion of their units. The leading manufacturers of mining chemicals are The Dow Chemical Company, SNF FloMin, Chevron Phillips Chemical Company, Cytec Industries, Clariant AG, and BASF SE. This industry is expected to exhibit a moderate a forward integration as many companies are involved in downstream activities as well. Region-wise Asia Pacific emerged dominant in the global mining chemicals market with a share of approximately 50% in 2012. The growth of the market in Asia Pacific can be attributed to the presence of leading manufacturers and expansion of their production units. Regions such as the Middle East and North Africa, Latin America, and Asia Pacific are investing in numerous infrastructure projects, thus fuelling the sales of mining chemicals in these regions.
Rising Investment in Mining Projects to Bode Well for Market Growth
Asia Pacific and South America are such regions which are aiming at improving their present mining infrastructure and are investing in new projects to boost economic development. Due to the degrading quality of ores of mines across the globe, mining companies are increasingly employing mining chemicals, thus boosting its demand. As a result of this, mining companies are compelled to adopt viable ways of extract minerals and ores. The demand for mining chemicals is also expected to intensify with the shift in consumption pattern and economic development of mining regions. The flourishing mining industries in Eastern Europe and Africa are expected to provide manufacturers with new opportunities to capitalize on.
Problems Associated with Transportation to Act as Hindrance
Problems involved with logistics and transportation of minerals and ores are factors that are likely to impede the growth of the market. Several times producers and mines are located far apart. Due to this transportation becomes a hectic process, thus delaying the demand for mining chemicals. Moreover, economic downturn in emerging economies is further expected to hinder the growth of the global mining chemicals market.