Explosives Market Intelligence

Explosives Market Description

High demand for explosives from APAC, coupled with advanced technology from North America is anticipated to provide the impetus for mining the market for explosives. Factors such as a constant rise in commodity demand, increasing mineral output, and declining ore heads are they drivers for the explosives market. There has been a fall in commodity prices due to the Chinese slump and the global economic slowdown. This has adversely affected the mining companies, thus affecting the supply market. Asia holds the largest share of the explosives market (29.2 percent), followed by North America (29 percent), Australia (19 percent), LATAM (7.9 percent), and Africa (7 percent).

The report also provides an overview of the market maturity in regions such as North America, LATAM, Asia, Australia, and Africa, followed by major trends dominating the industry. It also discusses the market outlook for explosives in various consuming sectors such as coal mining, metal mining, quarries and non-metals, and construction, along with various drivers and constraints impacting the industry. The report also provides Porter’s five forces analysis on factors such as supplier power, buyer power, barriers to new entrants, the intensity of rivalry, and the threat of substitutes.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Supply Landscape
Global Explosives: Industry Trends
Regional Market Snapshot-North America, LATAM, Australia, Asia, Africa
Key Global Supplier Profiles

Explosives Market Trend, Analysis & Forecast

Category Intelligence on Explosives covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

Global Market Outlook on Explosives

High demand for explosives from APAC, coupled with advanced technology from North America, will provide the impetus to mining explosives market, in terms of growth prospects, until 2018
A constant rise in commodity demand, coupled with increasing mineral output, and declining ore heads are the key drivers for explosives
Global economic slowdown, coupled with the Chinese slump, has prompted the fall in commodity prices. This has adversely affected the mining companies, thereby affecting the supply market

Global Explosives - Drivers and Constraints

Drivers

Increase in Commodity Demand

Commodities, such as coal, iron ore, etc., have a positive impact on demand for explosives, due to the expansion of mining activity

Rise in Commodity Prices

It results in high profit margins for mining companies, which triggers Greenfield and Brownfield mine project expansion

Declining Ore Grades at the Surface

The continuous decline (in the ore grades of both surface and underground mining) has led to increased exploration activity, which, in turn, acts as a driver for the rise in demand from the explosives
Copper head grades are expected to decline ~18–20 percent in 2017–2024 in the South American region, while gold head grades are expected to decline by ~15–17 percent in the same period

Constraints

Decrease in Commodity Demand

It leads to a fall in the explosive market

Decrease in Mineral Output Growth Rate

It will result in a reduction in mineral output from mines, adversely impacting explosives demand

Cyclical Market Condition

The manufacturers usually show considerable constraint, in terms of tire pricing, as the industry faces an unpredicted demand fluctuation in a short span

Regulations and Complexity in Transportation and Logistics

Increasing security and safety regulations have had a negative impact on the sales and supply of explosive products, especially in mining destinations, such as Africa, LATAM, etc.
Such stringent regulations affect the supply security and have impacted blasting services cost significantly

Market Driver - Commodity Price

Prices of key commodities are the best indicators of mining activities and which, in turn, evinces the demand for explosives
In Q4 2018, from October 2018 to November 2018, apart from iron ore and copper (which is expected to increase by an average of 5–6 percent, average commodity prices for the rest are expected to decrease by an average of 3–4 percent compared to the last quarters’ average
Demand for commodities increased tremendously, as the economy recovered from the economic recession in 2009. 2010 and 2011 saw a boom in mining activity, due to high demand for raw materials
Late 2013 and 2014 witnessed a slowdown in mining, resulting in the reduced demand for explosives
Again, 2014–2015 witnessed reduced demand; however, it is expected to uptrend in the coming years. The average commodity prices for the rest are expected to decrease by 8–9 percent in H1 2019 compared to the same period in the previous year