About Non-Ferrous Metals
The commonly used non-ferrous metals are aluminum, copper, lead, tin, nickel, titanium, and zinc. Non-ferrous metals are used because they are non-magnetic and have properties such as light weight, high conductivity, malleability, and resistance to corrosion. Such metals are produced by primary as well as secondary production methods. Primary production refers to the extraction of the metal from its ores, while secondary production refers to the recycling of the metal from scraps.
Technavio’s analysts forecast the global non-ferrous metals market to grow at a CAGR of 4.91% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global non-ferrous metals market for 2016-2020. To calculate the market size, the report presents the vendor landscape and a corresponding detailed analysis of the top seven vendors operating in the market. In addition, the report discusses the major drivers influencing the market growth and the challenges faced by the vendors and the market as a whole. It also examines key emerging trends and their influence on current and future market scenariosThe market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Non-Ferrous Metals Market 2016-2020
Technavio recognizes the following companies as the key players in the global non-ferrous metals market: Alcoa, BHP Billiton, Glencore, Hindalco Novelis, Rio Tinto, RUSAL, and Vale.
Commenting on the report, an analyst from Technavio’s team said: “The growing use of zinc products for cathodic protection will be a key trend for market growth. Cathodic protection is the method used to prevent corrosion of metal surfaces. It includes the involvement of two metals in an electrochemical reaction, where one acts as the cathode and the other as the anode. This method is widely used in industries such as oil and gas, power, and shipbuilding. It is cost-effective and provides adequate protection to metal surfaces. Zinc is preferred as the anode because of its corrosion-resistant property. We expect this to drive the market growth during the forecast period owing to the extensive development of the oil and gas and construction industries around the world. In addition, cathodic protection is also used to protect inner surfaces of small-diameter pipelines, buried metallic surfaces, and metal waterfront surfaces.”
According to the report, rising demand for galvanized steel is a key driver leading to market growth. Galvanization is the process of immersing steel in molten zinc to create a corrosion-resistant coating of zinc-steel. It also provides resistance to mechanical damage. Continuous galvanizing line is used to apply a coat of zinc on the surface of steel sheets to improve corrosion resistance. Galvanized steel sheets are used in many industrial applications like construction materials, automobiles, and electrical appliances. These products are lightweight and offer high strength, formability, and recyclability. The global demand for galvanized steel is increasing owing to its benefits in industrial applications. There are more than 800 continuous galvanizing lines in operation around the world. The rising demand for galvanized steel will lead to increased demand for zinc in the overall market.
Further, the report states that increase in cost of energy is a challenge against the market growth. Energy prices account for a major share (35%) of the aluminum production cost. Due to an increase in demand of energy, the prices are rising, leading to the closure of many smelters. For instance, energy cost per metric ton of aluminum production in China is $900 whereas the energy cost per metric ton of aluminum production in the Middle East and Canada is $350. For instance, Alcoa in 2015 announced the shutting of its Alumar smelter in São Luís, the largest smelter in Brazil. South America is becoming increasingly dependent on primary aluminum imports. Hydropower has become insufficient in fulfilling power requirements for the region and, so, Brazil will import power from Argentina and Uruguay during the forecast period. In addition, the higher energy costs lead to higher production cost of aluminum, which gets transferred to downstream products as well thus, affecting the profit margins for the vendors.
Alcoa, BHP Billiton, Glencore, Hindalco Novelis, Rio Tinto, RUSAL, Vale.