COVID-19 outbreak and lockdown impact on Metal and Mining Industry 2020

Impact of Covid-19 Global Metal and Mining Market: 2020 To 2027 Metal and mining industry is one of those industries that have been severely impacted due to the outbreak of coronavirus globally. The prices of steel and other metals have shown different behavior due to demand and supply scenario change. In response to the spread of the virus, some governments have seized the borders and have imposed large scales quarantines and social distancing measures to minimize the spread of the virus any further. The safety and well-being of workers were rightly the top priority of any country, but now companies must consider the economic effects of the pandemic, which are now apparent.

Request for covid19 impact analysis: https://www.databridgemarketresearch.com/covid-19-resources/covid-19-impacton-metal-and-mining-in-the-chemical-and-materials-industry The study throws light on the recent trends, technologies, methodologies, and tools, which can boost the performance of companies. For further market investment, it gives the depth knowledge of different market segments, which helps to tackle the issues in businesses. It includes effective predictions about the growth factors and restraining factors that can help to enlarge the businesses by finding issues and acquire more outcomes. Leading market players and manufacturers are studied to give a brief idea about competitions. To make well-informed decisions in Metal Target Material areas, it gives the accurate statistical data.

Industry challenges together with the latest developments in the technological developments of the Mining Equipment Market have been elaborated on in the market intelligence report. It also provides a detailed picture of the trends of the changing industry structure and the challenges that are faced by various industry participants. The report elaborates on the major challenges that the participants of the said market could possibly across the globe.

On the basis of Geography, the Mining Equipment Market is studied across Americas, AsiaPacific, and Europe, Middle East & Africa. The Americas region is studied across, Canada, Mexico, and United States. The Asia-Pacific region is studied across Australia, China, India, Indonesia, Japan, Malaysia, Philippines, South Korea, and Thailand. The Europe, Middle East & Africa region is studied across France, Germany, Italy, Netherlands, Qatar, Russia, Saudi Arabia, South Africa, Spain, United Arab Emirates, and United Kingdom.

A majority of players in the global mining equipment market are highly focusing on research and developmental activities. Achieving extensive product development by expansion of product portfolio is a prime scheme implemented by most players in the global mining equipment market. The competitiveness between individual players is expected to increase with new companies regularly entering this field during the upcoming years. Komatsu Limited, Caterpillar Inc., and Hitachi Construction Machinery are some of the handful of businesses operating in this market.

Mining is heavily dependent on the availability of manpower/labour who undertake the groundwork; with operations being scaled back, many such migrant labourers and workforce have retreated to their homebase. In addition, the lockdown has not only restricted access to workforce but also placed constraints on the movement of goods. Despite steel, coal and power production are termed as essential services, mining operations have been hampered due to lack of coordination among law enforcement authorities.

While cases of COVID-19 continue to increase throughout the world, mining companies have sought to ramp up previously suspended operations. Mining has been declared essential across Latin America, Canada, South Africa and most other areas due to the economic reliance on the industry. This reliance might play into the fact that there have been numbers of reported cases that did not result in mine closures or an impact on production. In April, there were reports of an outbreak in Norilsk's northern Russia that did not result in mine closures. Chile's National Copper Corp., or Codelco, has reported cases since mining was declared essential with no further closures to mine sites, although development activities have been halted for the time being. Similarly, Vale SA has reported cases in Brazil that have not caused further disruptions.

Analysis of the results shows that commodity production in Australia is expected to be least affected.

A majority of 44% of the respondents voted that commodity production in Australia is expected to be least affected, while 21% opined that China’s commodity production will be least affected and 16% felt that commodity production in Canada will be least affected.

Further, 10% of the respondents opined that commodity production in India will be least affected and 9% of the respondents felt that Russia’s commodity production will be least affected in 2020.

However, a lack of adequate and necessary systems and equipment in remote and underdeveloped regions to might exist, consequently restraining the market’s growth. This is mainly making geologists, mining personnel, and geotechnical engineers rely on traditional and outdated methods, thus posing as a prime obstacle to the market. The market also is being restrained due to a shortage of trained staff and required manpower for setting up the state-ofthe-art mining systems in several regions where mining activities flourish.

Impact on other commodities COPPER: Since the beginning of 2020, copper prices have dropped by almost 15% due to a downfall in demand from various end-use industries. However, with most manufacturers/smelters in china and as the country is slowly getting rid of the pandemic, copper demand and prices are expected to bounce back.

ZINC: Through the prices zinc rose rapidly from 2015 to 2019 will almost an increase of 32%, now facing downfall of around 18% from 2019 to 2020.

NICKEL: Despite of economic downturn, the performance of nickel was better than other commodities. The prices are also showing positive signs along with the supply. It is expected that by the end of 2020, there will be around 3% rise in the demand of nickel.

Conclusion The spread of COVID-19 pandemic around the globe has an immediate impact on the global economy and almost on all the industries including metal and mining. In the crises, some of the new players might get more affected than others because of the initial challenges that a business faces and then the challenges brought in by the pandemic. But, for a positive aspect, due to this pandemic, a real sense of togetherness has emerged among the players of the industry to stop the spread of this virus.

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