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Mining Chemicals Market : The study provides information on restraints, drivers and opportunities 2013 - 2019

01-12-2017 01:59 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: MRRSE.com

Mining chemicals are an important aspect of mining industry and used in a broad range of applications. The commercial applications of mining chemicals include mineral processing, explosives and drilling water and wastewater treatment and others. The revenue generated by the global mining chemicals market was USD 18,000.9 million in 2012. This market is expected to reach USD 28,130.8 million by 2019 and is anticipated to grow at a CAGR of 6.6% from 2013 to 2019.

Mining chemicals used as grinding aids accounted for the largest share of the mining chemicals market in terms of volume with over 29.0% share of total volume consumed in 2012. Mining chemicals used for collectors was the second largest product segment of mining chemicals followed by flocculants, frothers, solvent extractants and others. The mining chemicals industry exhibits a moderate degree of forward integration as few of mining chemicals producers are also engaged in downstream activities. This forward integration gives these participants a distinctive competitive advantage in terms of better customer retention and market demands.

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The demand for mining chemicals mainly stems from the decreasing ore grades across various mines globally. Decreasing ore grades have compelled the mining industries to further increase mineral processing activities in order to extract minerals economically. Profitability is hampered to a large extent due to decreasing grades of ores. Demand for minerals is influenced by economic development and consumption trends in the particular region. Thus, increase in economic activities needs to be complimented with an equivalent rise in providing basic minerals. Requirement of more complex mining chemicals stems from the need to maintain the cost associated with mining. Countries from Asia Pacific, Latin America and MENA have recently undertaken various infrastructure projects, which are expected to further increase the demand for minerals and subsequently mining chemicals.

Water & wastewater treatment was the major application of mining chemicals and accounted for around 40% of the total mining chemicals volume consumed in 2012. There has been as increase in demand for mining chemicals used for water treatment due to various laws passed by different countries to control the effect of mining on the environment. The growth of mining chemicals market is likely to be restricted by the complexity involved in the transportation and logistics of mining chemicals. Often, mines and producers of mining chemicals are located continents apart. This is another factor that adds to the intricacy of transportation and logistics of mining chemicals. Hence, suppliers need to constantly evaluate all the logistic possibilities in order to provide economies of scale and deliver products on time and in exact quantity.

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Asia-Pacific and Europe were the major markets for mining chemicals in 2012. With over 50% shares in total volume consumption, Asia Pacific was the largest regional market for mining chemicals. in 2012. Leading mining chemicals manufacturers have concentrated on capacity expansion in Asia Pacific to increase their production capacities. The revival of global economy has resulted in increasing demand for minerals and rare earth metals across the globe. This growth in global mining industry is expected to further spur the demand for mining chemicals in the next few years.

In the recent past, industry participants have shifted their focus on capacity expansion to increase production of their respective facilities. Some of the key market participants operating in the mining chemicals market include BASF SE, Clariant AG, Cytec Industries, Chevron Phillips Chemical Company, SNF FloMin and The Dow Chemical Company among others.

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