14 November, 2019
RALEIGH, North Carolina, Nov 14, 2019 - The global explosives market size is currently estimated to be 16.7 MMT, and the supply is expected to continue to be greater than the demand until 2021, according to Beroe Inc., a procurement intelligence firm. A constant rise in commodity demand, coupled with increasing mineral output, and declining ore heads are the key drivers for the global explosives market.
At a global level, the demand deficit markets for explosives are North America and Australia while the supply deficit markets are LATAM, Asia, and Africa. 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. Asia has the largest market size of 4.18 MMT, growing at a rate of 5.95 percent, followed by North America with a market size of 3.14 MMT and a growth rate of 4.65 percent.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
Commodities, such as coal, iron ore, etc., have a positive impact on demand for explosives, due to the expansion of mining activity. 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 explosives. 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.
Coal mining is currently the single largest end-user segment for explosives, accounting for 68–72 percent of the total demand, growing at a rate of 2 percent till 2020, followed by metal mining which accounts for 18–20 percent of the market demand, growing at a rate of 2.5–3 percent. The construction sector has been able to post moderate growth in the past 1–2 years, backed by a rebound in economic growth as well as policy initiatives in the majority of the economies.
The research methodology adopted for the report included:
Raw materials account for the majority of the cost of around 65 percent in all types of emulsion explosives. The share of raw materials tends to increase, as the emulsion content increases, due to the increase in oil content. Logistics and warehouse costs account for 15–16 percent of total costs, followed by conversion costs for 9–11 percent. The pricing formula used is base price combined with the price adjustment clause, based on raw material prices.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com
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