Researched by Industrial Info Resources (Sugar Land, Texas)--In North America, the 12-month project pipeline numbers for the Metals & Minerals Industry fell 14.4%, from $55.4 billion the first quarter of 2021 to $47.4 billion in the second quarter of 2021, according to the second-quarter 2021 update of Industrial Info's North American Industrial Market Outlook report.

The North American Industrial Market Outlook report is updated quarterly and provides a review of the potential project spending outlook and trends impacting spending for the next 12-month period.

Leading economic indicators point to improved market conditions, including near-historic high commodity prices for copper and iron ore. The increase in metals prices is translating to a better financial condition for mining majors, which have also lifted capital expenditures. However, this has yet to result in increased value in construction starts for the Metals & Minerals Industry in the near term in the U.S. and Canada.

In the U.S., the pipeline of potential project spending in the Metals & Minerals Industry for the 12-month period from April 2021 to March 2022 is sitting at $25.7 billion.

In Canada, the pipeline of potential project spending for the Metals & Minerals Industry during the same period is sitting at $21.7 billion.

Attachment

Click on the image at right to view a chart showing the breakdown of Metals & Minerals projects in U.S. & Canada in the 12-month project pipeline (April 2021 - March 2022).

"We are actually projecting a moderate decline in the value of project starts for North America in 2021 when compared to 2020," said Joseph Govreau, Industrial Info's VP of Research for the Metals & Minerals Industry. "We had a surprisingly strong 2020, in spite of the pandemic-related project delays and plant shutdowns. The second half of the year finished very strong as companies like Nucor (NYSE:NUE) (Charlotte, North Carolina) restarted projects that had been delayed earlier in the year. So far this year, we haven't seen a whole lot of large TIV (Total Investment Value) projects starting construction, so I think that is being reflected in this quarter's market assessment."

In spite of the muted near-term outlook, the long-term outlook is encouraging for Metals & Minerals, especially for mining going into 2022 and beyond.

For details on the North American Industrial Market Outlook report click here.



Leave a Comment


comments powered by Disqus


Recomended for you...

California's Biotech Industry Plans $5.3 Billion in Projects

Researched by Industrial Info Resources (Sugar Land, Texas)--California has one of the largest biotechnology clusters in the world.…

Mexico's Animal Feed Production Booms

Researched by Industrial Info Resources (Sugar Land, Texas)--Mexico, one of the largest food and beverage producers in Latin…