Rapid pace of urbanization in various parts of the world has spurred the demands for commodities, reinforcing different demand dynamics in the metal and minerals markets. Incorporation of new mining technologies, riding on the back of increased automation and artificial intelligence, have enabled companies in the metals markets to expand their prospects. Players in the metals and minerals markets have in recent years made strategic efforts to integrate their supply chain with their entire value chain.
The most significant shift has perhaps come from the change of strategies in the commodities bust in some regions in recent years. Given the risky nature of mining projects, miners and metals producers are expected to expend their efforts and funds toward conducting rigorous feasibility studies. The declining value of financial returns in metal and mining projects has imparted momentum to their efforts. Various industry players have collaborated to develop standard criteria for feasibility studies. The emergence of new management approaches will help them achieve the objectives faster.
Rise in demands for metals in the iron and steel industry has also helped boost the revenue potential of the metals and minerals market. So, a great deal of the demands are underpinned by the growing infrastructure developments in developing economies. Large chunks of demand for metals have come from automobile manufacturing, especially in Asia Pacific. Meanwhile, metal producers have benefitted from the advent of better catalysts. Of note, producers of precious metals will benefit considerably from the use of such catalysts.
The metals and minerals market will see new avenues from the changing government regulations, especially those pertaining to new mining projects. Such regulations have been increasingly focusing on improving the environmental sustainability of such projects. The steel industry on the other hand will be a witness to several such trends, shaping the market dynamics of metals and minerals markets. The industry will see new business models.