High Purity Base Metals Market Size, Share & Trends Analysis Report By Product (Copper, Aluminum, Lead, Zinc), By End Use (Transportation, Building & Construction), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global high purity base metals market size was valued at USD 323.06 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 2.6% from 2020 to 2027. Growing demand for high purity base metals from industries, such as consumer goods, electronics, transportation, and construction, is anticipated to augment market growth over the forecast period. The market witnessed a slight decline in 2019 owing to trade wars and the demand-supply gap. In addition, the emergence of the COVID-19 pandemic negatively impacted the market growth in 2020 as the virus outbreak disrupted the manufacturing, transportation, and demand from the end-use industries. Despite the obstructions caused by the pandemic, the demand for high purity base metals is expected to stabilize in the near future owing to their propelling demand from the end-use industries.

The U.S. is a significant market for high purity metals, considering the establishment of the end-use industries in the country. The country is a prominent consumer of high purity aluminum, especially for the defense industry, which utilizes the high purity base metal in aircraft, vehicles, and ammunition. However, the country is also amongst the adversely affected nations in the world due to the COVID-19 pandemic, which is expected to impact market growth.

The pandemic has severely impacted the production and supply of base metals, which is expected to negatively influence market growth. For instance, zinc has seen a major disruption, which can be attributed to the lockdown in Peru, a major producer of the metal. The situation is unfavorable in Chile as well, which is a major copper producer. Codelco, the world’s largest copper miner in Chile, had to shut down its Chuquicamata smelter and refinery post another worker’s death owing to coronavirus.

Transportation is the largest end-user of the high purity base metal market, which consumes high purity base metals in various applications. The rising demand for electric vehicles is expected to prove beneficial for base metals demand over the forecast period. Copper usage in electric vehicles is more than double its use in gasoline-powered cars. According to the International Copper Association, with the growing demand for electric vehicles, over 40 thousand charging ports shall be needed over the next decade that will consume around 100 kilotons of copper by 2027.

End-use Insights

The transportation end-use segment held the largest revenue share of more than 29.0% in 2019. All major base metals in their pure state are largely being utilized in the automotive industry. Lead is a key raw material for batteries, which are largely used in the automotive, industrial, consumer goods, and electronic industries.

Batteries have been a key application segment of lead and shall now prove to be a vital source for the production of refined lead as well. Companies are engaged in recycling old batteries for manufacturing refined lead in order to fulfill accelerating consumer demand. For instance, in September 2020, Chunxing, a major producer of secondary lead, received approval from the Environmental Protection Agency of the Australian State of Victoria for the construction of a recycling plant. The plant is expected to recycle 50 kilotons of lead-acid batteries and produce 28 kilotons of refined lead per annum.

The electrical and electronics end-use segment is expected to be one of the fastest-growing end-use segments over the forecast period. Copper is extensively used in this segment to make electrical wires owing to its high electrical conductivity, ductility, and thermal resistance. In addition, advanced chip designs that require high purity copper for faster chip speeds and increased device performance are anticipated to augment product demand in the end-use industry during the coming years.

Product Insights

Aluminum was the largest product segment with a revenue share of more than 42.0% in 2019. High purity aluminum finds application in the high-tech industries that require good electrical conductivity and corrosion resistance in their products. In electronics, it is used in sputtering targets for semiconductor chips, in vacuum evaporation materials for thin-film applications, and in LED production as well.

The characteristics of high purity aluminum are compelling companies to invest in research & development in order to widen the application area of the product. For instance, in April 2019, researchers in Tohoku University and Sumitomo Chemical together undertook the R&D of novel anodes for higher capacity Li-ion batteries. In April 2020, the researchers came up with a mechanism that usage of high purity aluminum foil can help control the expansion and contraction of high capacity aluminum anodes, thereby preventing their deterioration during the cyclic battery reactions.

Zinc is anticipated to witness significant growth throughout the forecast period. Zinc largely finds application in galvanizing and alloys. Galvanization is extremely important in the construction and transportation industries in order to gain durability, protection, and low cost for the structure and vehicles. The development of steel structures in the long term is anticipated to augment the demand for the product.

The base metal, however, had to face a significant decline in its prices owing to disrupted supply caused by obstructions created due to the COVID-19 pandemic. Industries such as construction and transportation took a hard hit in 2020, which impacted the demand, and thus caused zinc prices to decline.

Regional Insights

Asia Pacific dominated the global market and accounted for a volume share of more than 71.0% in 2019. The large share of the region is mainly attributed to China, which is the major consumer of base metals in the world. The growth of the developing economies of the region is also expected to contribute toward the demand for high-purity base metals in the coming years.

Growth of the end-use industries in India is a positive aspect for the market to flourish in Asia. Initiatives by the Indian government to promote manufacturing in the nation are expected to augment the production of high purity base metals in the country for satisfying consumer needs. For instance, in September 2020, Hindalco Industries signed a pact with Hindustan Copper Ltd. for the long-term purchase and sale of copper concentrates produced by the PSU.

This partnership is in alignment with the Indian government’s clarion call for Aatmanirbhar Bharat Abhiyan and a major step toward reducing the country’s dependence on imported copper concentrates. This pact shall help in using the locally mined copper concentrate for the manufacturing of refined copper. Copper by Hindalco Industries is utilized in key industries of India, such as railways, electronics, and construction. Such initiatives are anticipated to propel market growth throughout the forecast period. 

Europe held the second-largest share in the market in 2019. The region, however, is anticipated to register a low growth rate over the forecast period owing to declining demand for base metals, especially refined zinc. The COVID-19 scenario has further deteriorated the production and demand for base metals in the region by negatively impacting the growth of key end-use industries. Countries including Germany, France, and the U.K. were hit hard, which reflected in their GDPs for the second quarter of 2020, which were -10.1%, -13.8%, and -20.4% respectively. 

Key Companies & Market Share Insights

The market is highly competitive owing to the presence of established players engaged in the mining and refining of base metals. Companies had to face losses during 2020 owing to the virus outbreak and had to shut down their mining and manufacturing operations.

For instance, in July 2020, Rio Tinto announced the closure of its Tiwai point aluminum smelter in New Zealand by August 2021. The shutdown of the smelter is a strategic decision as it was no more found to be a viable business option. Factors such as high electricity consumption, rise in energy costs, and falling aluminum prices due to COVID-19 can be held responsible for the shutdown. The company made a loss of NZ$46 million from the smelter in 2019. Some prominent players in the global high purity base metals market include:

• Aluminum Corporation of China Limited

• BHP

• Boliden Group

• Codelco

• Hindalco Industries

• KGHM Polska Miedź S.A

• Norsk Hydro ASA

• Nyrstar

• Rio Tinto

• Rusal

• Sumitomo Chemical

High Purity Base Metals Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global high purity base metals market report on the basis of product, end-use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Copper

  • Aluminum

  • Lead

  • Zinc

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Building & Construction

  • Industrial Machinery & Equipment

  • Consumer & General Products

  • Electrical & Electronics

  • Transportation

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa