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Exports are forecast to rise as demand from developing economies increases, providing a growing source of revenue for the industry. For these reasons, industry research firm IBISWorld has updated a report on the Nonferrous Metal Rolling and Alloying industry in its growing industry report collection.
New York, NY (PRWEB) July 14, 2014
The Nonferrous Metal Rolling and Alloying industry manufactures products from titanium, nickel, lead, zinc and other nonferrous metals, except aluminum and copper. The purchase of nonferrous metals comprises the largest cost for the industry. During periods of strong demand, industry operators pass on cost increases in the form of higher selling prices and raw material surcharges, generating more revenue for nonferrous metal manufacturers, according to IBISWorld Industry Analyst Leah Goddard. However, during periods of weak demand, there is greater competition among industry operators to lower selling prices in order to attract customers. Thus, higher prices of nonferrous metals might not translate into higher revenue for industry operators. After falling by double-digits in 2009, nonferrous metal prices have trended upward over the five years to 2014. Similarly, industry revenue is forecast to grow at an annualized rate of 8.0% over the period.
The global economic crisis dramatically reduced demand from the industry's major markets, leading revenue to plunge 32.4% in 2009. As economic conditions improved, rebounding demand and prices of nonferrous metals led to a relatively strong recovery in 2010 and 2011. However, slowing economic growth in China and continued economic uncertainty in the United States and Europe have weakened prices for nonferrous metals since 2012. Moreover, steel manufacturing, which comprises the largest market for nonferrous metals, has remained well below prerecession levels of production, contributing to lower industry output over the period, says Goddard. Following modest declines in 2012 and 2013, industry revenue is projected to decrease 2.4% to $22.3 billion in 2014.
Nonferrous metal manufacturers will be better positioned to take advantage of improving economic conditions over the next five years. Exports are forecast to rise as demand from developing economies increases, providing a growing source of revenue for the industry. In addition, rebounding demand from the industry's major markets will bolster sales and selling prices domestically. However, rising domestic demand will also cause import competition to modestly increase, particularly as nonferrous metal production continues to expand in emerging economies. Over the five years to 2019, industry revenue is projected to grow, driven mainly by increasing demand from steel producers as well as domestic and international manufacturing markets.
For more information, visit IBISWorlds Nonferrous Metal Rolling and Alloying in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Nonferrous Metal Rolling and Alloying industry produce semifabrications from nonferrous metals, except copper and aluminum. Primarily, they roll, draw, extrude and alloy shapes from purchased nonferrous metal. Companies also recover nonferrous metals and alloys from scrap.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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