The world copper industry is highly competitive in nature as top 10 players operating in this industry are accounted for nearly 50% of the market share. Prominent copper producers are Codelco, Freeport-McMoRan, BHP, Glencore, Rio Tinto, Anglo American, Grupo México, KGHM, Antofagasta, and First Quantum Minerals Ltd.

Manufacturers operating in this industry are adopting M&A strategies to strengthen their presence in a competitive environment. Some key partnerships are given below:

• In December 2018, Vale S.A. announced that it had entered into an agreement to buy Ferrous Resources Limited, a Brazilian mining company engaged in exploration.
• In October 2018, Malmyzh Copper-Gold Porphyry Project of IG Copper LLC and Freeport-McMoRan Inc. was acquired by Russian Copper Company ZAO. Malmyzh Copper-Gold Porphyry Project of IG Copper LLC and Freeport-McMoRan Inc. comprise copper and gold reserves.
• In October 2018, BHP doubles stake in promising Ecuador copper project. According to BHP, this additional investment in SolGold strengthens its strategic position in the Cascabel copper exploration project.
• In January 2018, Aurubis, a largest copper producer and recycler in Europe acquired Codelco’s shares in Deutsche Giessdraht. Deutsche Giessdraht, a German manufacturer of copper products, produces more than 200 kilo tons of copper wire rod per year out of high-quality Grade A cathodes. Deutsche Giessdraht produces more than 200 kilo tons of copper wire rod annually. This acquisition is expected to strengthen the Aurubis copper products division in the global market.
• In August 2017, First Quantum Minerals Ltd. announced plans to increase its ownership in Minera Panama S.A. to strengthen its position in the global copper industry.
• In November 2014, copper miner, Antofagasta, announced plans to acquire Canada’s Duluth Metals to strengthen its distribution network to tap the copper market other than Chile.

Copper is extensively used in building & construction, electrical & electronics, industrial machinery, transportation, and consumer & general products. In 2017, building & construction application accounted for more than 35% of overall market share. Resistance to corrosion and ability to conduct heat and electricity makes copper ideal material in the construction industry. Growing consumption in building power transmission units and a flurry of construction projects in developing countries is expected to increase copper consumption over the coming years.

The global electrical & electronics industry value exceeded USD 4 trillion in 2017. Growing application in the electrical power industry such as transformers, plug components, connectors, wire, cable, residential electric circuits, and motor manufacturing is expected to drive its consumption over the forecast period. Furthermore, copper brazing material and copper foils are being increasingly used in vacuum electronic devices such as high-frequency tubes, magnetron, and copper printed circuits.

Copper alloys are extensively consumed in the shipping industry including manganese bronze, gunmetal, aluminum bronze, brass, aluminum, nickel-copper alloys, zinc, and tin. Growing adoption of copper and copper alloys in commercial ships and warships to manufacture bolts, condenser pipes, aluminum bronze propellers, rivets, and copper coated paints is expected to further increase its market concentration.

Apart from transportation and construction, copper is used extensively in the automotive industry such as radiators, gears, braking systems, brake linings, hydraulic equipment, bearings, power distribution, fittings, and gaskets. Moreover, rail-related parts & components including rectifiers, brakes, controls, electrical signal system, and motors completely rely on copper and copper alloys. In 2017, the global rail infrastructure market was more than USD 40 billion. The growing rail infrastructure all around the world is expected to increase copper concentration for railway electrification. Copper also finds wide applications in aerospace industry in cooling system of planes, hydraulic, pneumatics, and wiring systems.

Ongoing infrastructure projects such as l-405 Project (Orange County, California), California High-Speed Rail Project, Los Angeles Metro Rail Projects, Northeast Boundary Tunnel (NEBT) in Washington, Central Subway Project, Texas Central High Speed Railway, and Hyperloop from New York to Washington DC is projected to encourage the North American copper industry. North America accounted for more than 10% of global copper consumption in 2017. Some of the leading copper mines operating in this region are Morenci, Chino, Safford, Bagdad, Bingham Canyon, Sierrita, Ray, Pinto Valley, Robinson, and Continental Pit.

Light vehicle sales in North America exceeded 20 billion units, in 2017. Copper plays an important role in automotive manufacturing. A typical U.S. built automotive vehicle consist of more than 50 pounds of copper. In addition, the emergence of electric vehicles in the U.S. and Canada is expected to increase market concentration over the coming years.

Besides the US, the copper industry plays an important role in the European economy as well. The well-established semi-fabricating sector, and pioneered metallurgical processing technologies to convert copper and scrap material into copper products has increased its usage over the past few years. This trend is expected to continue over the forecast period with an increase in the demand for energy utilities, electronic equipment, and automotive.

The European copper mining industry also offers valuable by-products that can be extensively adopted in applications using advanced materials. For instance, copper mining is responsible for the production of selenium, molybdenum, cobalt, tellurium, rhenium, and rare earth elements. In 2017, the production of semi-fabricated copper and copper alloy products such as wires, rods, tubes, profiles, strip, and sheets accounted for more than 4 billion tons in Europe. The leading copper miners in Europe are based in Sweden, Finland, Poland, Spain, and Portugal.

In 2017, copper consumption across Asia Pacific was more than 16 billion tons. Growing infrastructure development coupled with the rapid development & expansion of the electrical and electronics industry in India, China, Japan, and South Korea is expected to provide new avenues for the copper market over the coming years.

• Intense consumer: Over the past few years, rapid industrialization has led to increased copper consumption in China. Extensive research & development along with the increasing demand for B2B and B2C products is expected to result in the continued existence of this trend over the projected period. In 2017, China copper consumption accounted for nearly 50% of the world copper consumption. Growing production of electric vehicles (EVs) coupled with the rising demand for renewables is expected to spur market growth over the coming years. By application, electrical & electronics industry in China accounted for more than 40% of overall consumption.

• Early-stage consumer: In 2017, the per capita copper consumption in India exceeded 0.3 kg. Increasing population followed by government initiatives such as Pradhan Mantri Awas Yojana is expected to increase copper consumption in India. Moreover, Smart City initiatives covering aspects such as the construction of renewable energy and metro projects is expected to increase copper consumption in the building & construction industry. Hindalco Limited, Vedanta Industries Limited, and Hindustan Copper Limited (HCL) are three major players operating in the Indian copper industry.

Huge investment to strengthen the manufacturing industry in the Middle East & African countries including Saudi Arabia, Turkey, South Africa, and Israel is likely to provide potential opportunities for the copper industry. Increasing expenditure towards the building & construction sector in Turkey as a result of improving economic scenario and increasing disposable income of consumers. These factors are expected to drive the global copper market demand over the forecast period.