Europe Bronze by USD Mn Value Market

The growth of the Europe bronze market is largely driven by the widespread use of various bronze products in the marine and shipbuilding industry. The growth of the maritime trade in the past few years and the rise in the manufacture of shipping vessels is one of the key factors driving the market growth. Europe is one of the technological leaders in the global shipbuilding industry and account for over 30% of the marine equipment segment. In addition, with the increase in demand for marine defense equipment and the growing use of bronze in this industry is further expected to favor the market growth. Moreover, the automotive and the aerospace and defense industries play a key role in the Europe bronze market. Various bronze alloys are used to make wheel & brake components, landing gear bushings, hydraulic components, actuators, and other aircraft applications. However, the oxidizing nature of bronze products, which further negatively affects the performance of finished products, is expected to be a key factor hampering the demand for bronze and thus is likely to limit the market growth.

Maritime transport is the backbone of global trade and the manufacturing supply chain, as more than 80% of world merchandise trade (by volume) is carried by sea. Increasing industrialization and the liberalization of national economies have further fueled free trade and high demand for consumer products. In addition, advances in technology have also made shipping an increasingly efficient and swift method of transportation.

Copper is one of the major metals used in the marine industry, where the alloy increases the strength and durability of the components or hardware. Bronze comprises 86–88% copper and is one of the highly recommended copper alloys for use in the manufacturing of marine hardware. Bronze is highly versatile and resistant to biofouling, particularly macrofouling. Some of the major copper-bronze alloy groups employed to produce marine hardware include Cu-Sn-P (phosphor bronze), Cu-Sn-Zn (gunmetal), Cu-Al (aluminum bronze/nickel aluminum bronze), and Cu-Si (silicon bronze). Nickel-aluminum bronze finds applications, particularly in marine defense applications, in the manufacturing of submarines. It is particularly used in the manufacturing of valve systems, seawater piping, weapon handling, sonar equipment, flexible couplings, hydraulic valves and bearings, seawater external hatches, fasteners and sealing flanges, propulsion equipment, periscope assemblies, and low noise propellers. The vital properties of nickel aluminum bronzes, such as non-sparking, corrosion resistance, wear resistance, and high impact and strength, are responsible for its increasing application.

The anti-damping property of bronze that is twice of steel is important in submarines to operate silent operations as it suppresses sound. Additionally, the wear resistance and non-sparkling property of bronze help to operate the weapon handling system smoothly and efficiently. Some of the types of bronzes used in the marine defense hardware are UK Def Stan 02-747 Parts 1-4 (cast), UK Def Stan 02-833 (wrought), and ASTM B150 C63200. The growth of marine defense industry in recent years is expected to increase the application of bronze in the regional market. For instance, C95400 offers high tensile strength and yield, extreme toughness, and high resistance to fatigue, deformation, and wear. This makes them highly acceptable in marine hardware such as gears, bushings and bearings, pumps, and valves, which are continuously exposed to saline water.

According to the data provided by the United Nations Conference on Trade and Development (UNCTAD), the gas carriers segment (in maritime shipments) registered the highest growth (7.25% in the year 2019), mainly due to significant expansion in the liquefied natural gas sector. This trend is expected to continue in the following years owing to the mounting environmental concerns and pressure on the maritime sector to switch to cleaner fuels. The world container fleet also registered an increase of around 5%. Moreover, the bulk carriers recorded the highest level of ship deliveries, accounting for 26.7% of the total gross tonnage built in 2018, followed by oil tankers (25%), container ships (23.5%), and gas carriers (13%).

The European shipbuilding industry consists of about 150 large shipyards. Around one-third of them are active in the global market for large seagoing commercial vessels, and the European market accounts for around 6% in terms of tonnage and 35% for marine equipment, of the global shipbuilding industry. The European shipbuilding industry is one of the global leaders in the construction of complex vessels, such as cruise ships, mega-yachts, ferries, and dredgers. It also has a strong position in the building of submarines and other naval vessels.

The ongoing geopolitical tensions and diplomatic wars have consequently increased the investments in the marine defense industry. With the increasing investments, the manufacturing of aircraft carriers, cruisers, destroyers, frigates, large patrol vessels, torpedo boats, minesweepers, and air-cushioned landing craft has increased at a significant rate, which is expected to boost the demand for bronze during the forecast period. Moreover, autonomous ships are piloted by artificial intelligence (AI). Autonomous ships are equipped with sensor-based technologies such as radar, high-definition (HD) cameras, LiDAR, sonar, and thermal imaging, which reduce the need for manpower. The increasing adoption of information and communication technology by the marine industry and growing trade through sea routes across the globe are driving the demand for autonomous ships. The major companies such as Honeywell International Inc, Marlink, Rolls-Royce, General Electric, ABB, and Siemens AG are making high investments in this latest technology of autonomous ships, which is expected to reach around USD 125 billion by 2025.

Thus, the growth of the global maritime trade, coupled with the growth of the European shipbuilding industry, and the increasing investments in the marine defense industry are some of the key factors driving the demand for bronze in the regional market.

Electric vehicles continue to grow in popularity in Europe and around the world as production costs fall, charging infrastructure is deployed, and the urgency to reduce the transport sector’s climate emissions grows. Europe has emerged as the second-largest electric vehicle market in the world by volume, behind China and ahead of the US. The stringent CO2 emission standards in the EU and increasing investments in infrastructure and manufacturing have spurred growth across the region.

Aluminum bronze that belongs to a group of copper-based alloys exhibits excellent chemical and mechanical properties as compared to other alloys. The content of aluminum in this alloy usually ranges from 5 to 12%. In addition, the alloying elements that are frequently used in aluminum bronze are iron, nickel, manganese, tin, and silicon. Principally, there are four types of aluminum bronze, including the low alloy, single-phase alpha alloy containing less than 8% aluminum; highly alloyed, a two-phase alloy which contains 8–11% of aluminum and in addition of iron and nickel, for better strength and toughness; copper-aluminum-silicon alloys or silicon-aluminum bronzes, which are mainly alpha-phase alloys having silicon contents up to 2% and aluminum to 6%; and the copper-manganese-aluminum alloys, or manganese-aluminum bronzes, which are developed primarily to produce propellers. Aluminum bronze is used to cast automobile parts due to its high impact absorption property. It is used across heavy-duty vehicles and carriers, and sometimes in passenger vehicles. The commonly manufactured components are ball bearing and gears, as they pose high wear resistance and strength. Additionally, the growth of the autonomous or e-vehicles market is further expected to boost the growth of the bronze market. As automotive manufacturers are increasingly targeting the options for reducing fuel consumption and emissions, electrical propulsion becomes more attractive. Replacing an aluminum rotor with a copper-alloy rotor will increase the advantages of an induction motor and can improve the performance of electric and hybrid-electric vehicles. The copper rotor bar and end rings reduce electrical losses, leading to a smaller, more efficient motor. Copper and copper alloys are used in electric motors, batteries, inverters, wiring, and in charging stations because of their durability, malleability, reliability, and superior electrical conductivity.

Electric mobility is expected to grow exponentially in Europe in the next five years. According to a study released by Chemnitz Automotive Institute (CATI), Europe will produce more than two million electric cars by 2025, with over 50% of these cars to be produced in Germany, home to some of the EV pioneers like Volkswagen, BMW, and Audi.

With over 560,000 electric vehicle registrations in 2019 and 1.8 million cumulative registrations through the end of 2019, Europe collectively represents the second-largest market for electric vehicles globally. Moreover, registration of BEVs increased by 50% in 2018 compared with 2017, one of the biggest increases since 2008. Germany (around 34,300 vehicles), France (over 32,700 vehicles), and the Netherlands (around 24,200 vehicles) are the key countries in the EV market. With more stringent CO2 standards taking effect in 2020, along with added benefits for automakers with higher electric vehicle sales shares, it is likely that the electric vehicle growth is further expected to accelerate in the coming decade.

Bronze comprising 85–88% copper, is neither soft as copper nor brittle as tin. However, it offers weak resistance to ammonia, ferric compounds, and cyanides. The surfaces of bronze are worn by its exposure to dust, dirt, and air. The presence of sulfur and chlorine in a moist environment also tends to cause deterioration of the bronze components. The appearance of green spots on the surface of the bronze, which is equivalent to the formation of rust in iron, is known as bronze disease. This disease is caused when chlorine and oxygen combine in a moist atmosphere and forms hydrochloric acid. The acid reacts with the bronze component that forms copper and tin chlorides and, in turn, breaks the bronze. The presence of bronze cookware, which has 88% of copper, produces harmful effects due to oxidation. For instance, the cooking surface when in contact with acidic food produces toxic verdigris, which is poisonous if consumed. Moreover, the use of bronze jewelry is growing at a significant rate, which is expected to boost the demand for bronze. Most of the bronze jewelry, such as rings, pendants, cocktail rings, earrings, and necklaces, are susceptible to oxidation. The jewelry is always to be kept dry. If exposed to moisture and oxygen, they tend to form a green patina. Also, bronze contains copper, which forms a green mark as it reacts to the sweat and other acids that are excreted from the skin. Thus, oxidation of bronze is a major concern for the producers; however, various coatings and films are in the development stages to reduce the oxidation level and deterioration rate of bronze-based components. These factors are expected to hamper the growth of the regional bronze market during the forecast period.

Bronze is a copper alloy. The major raw material used in the production of bronze is copper, along with 5 to 12% of other alloying materials such as aluminum, zinc, tin, nickel, and iron. The copper market has been highly influenced by the change in its pricing during the past years. The increase in raw material prices increases the manufacturing cost, which is expected to influence the pricing of bronze as a finished product. There have been large price fluctuations of copper, with USD 6.77 per kg in 2014 and reduced to USD 4.32 per kg in 2016. The prices further raised to USD 6.83 per kg in 2018 and again declined to USD 5.95 per kg in 2019. These untimely fluctuations are a result of a combined or single factor, including demand, supply, global and regional economic position, commodity markets, and stockpiles. A surplus of copper leading to excess supply than demand, price fall, and reduction in the availability of copper due to some situations, results in price hike. Moreover, any disruptions in mining in a specific region can affect copper prices significantly. Fluctuations in copper prices affect the production cost of copper-based alloys and, thus, the regional bronze market.

Similarly, the cost of tin, which is one of the major components in bronze, has increased by over 55% from 2016 to 2018. The increase in price also depends on the availability of raw material and the pricing of the raw material supplier. For instance, raw materials such as copper, tin, and lead are cheaper in Asian countries than in Europe. This difference in raw material pricing has encouraged players to set up plants in Asian countries. This finally contributes to the growth in the GDP of the developing countries in the region.

Thus, the fluctuation in the raw material prices of copper, tin, nickel, aluminum, lead, and others is expected to be a major challenge for the producers in the past couple of years.