The market for copper is expected to grow at a CAGR of more than 6% globally during the forecast period. Increasing demand from construction, electronics, and telecommunication industries are the reasons for the market growth. The impact of COVID-19 results in lower mining activities and consumption of Copper and other factors are expected to hinder the market growth.
Key Market Trends
Growing Demand for Electronical and Electronics Segment
- Copper is the third-most-consumed metal in the world and is also known as a highly electrically conductive material. The electronics segment has a strong relationship with copper and copper is being used for many applications because of its properties.
- Properties of copper include good electrical conductivity, excellent thermal conductivity, corrosion resistance, high ductile, recyclability, and non-magnetic nature.
- Electronic applications of copper are wires and cables, dynamos, transformers, motors, electromagnets, switches, communication cables, residential electrical circuits, etc.
- Recently, the growth of electrical vehicles has increased the demand for copper. Foils, stator, rotor, shaft head, hollow wires, and motors are being used in electrical vehicles that consist of heavy copper.
- Many companies have shifted to copper by replacing aluminum in producing robots internal parts, high-speed computers, home appliances, and telecommunication applications. The growth of these segments in developing economies has increased the demand for copper in recent times.
- But, the impact of COVID-19 resulted in lockdown in industrial activities across the globe. Due to this, the production of electronics has been stopped temporarily in many countries. Also, the mining of metals, including copper has sloweddown in 2020. These reasons are expected to decrease the demand for copper in short term.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific is expected to dominate the global market owing to the highly developed construction and power generation sectors in China, coupled with the continuous investments done in the region to advancements in the telecommunication, electronics sector through the years.
- China, Japan, and South Korea have been investing a lot in the technology development processes such as robots, supercomputers, high power generation units, electric vehicles, and communication devices.
- China is one of the largest consumers of electricity. In March 2019, the National Development and Reform Commission (NDRC) of China approved 224 solar and wind energy projects to deliver a total combined capacity of 19.29 GW, as well as a further 1.47 GW of renewable distributed energy resources (DER) trading pilot programs.
- The demand for copper is high from Asia-Pacific as countries such as China, Vietnam and Korea possess a large base of production units that includes home appliances and mobiles, which are also largely exported to other regions.
- However, the recent COVID-19 pandemic, which originated in China, has tremendously impacted the Chinese economy with trade disruptions. China, one of the largest exporters of goods, has witnessed a massive decline in trade, due to lockdowns in various parts of the world. The decline in investments is likely to restrain the growth of the market until 2021.
- Post-2021, the market is likely to grow for the rest of the forecast period as the demand from end-user industries is forecasted to re.
The Copper Market is partially consolidated in nature with a few major players dominating a significant portion of the market. Some of the major companies are Glencore, BHP, Codelco, Aurubis AG, and KGHM, amongst others.
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