Asia Will Lead Fourth-Quarter 2011 Metals and Minerals Project Starts

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--Next quarter, the global metals and minerals industry will see more than 450 capital project starts, according to Industrial Info. Though project starts have been steadily increasing each quarter this year, investments have fluctuated and are expected to end 6% down from the first quarter. Asia will continue to lead global capital project starts this quarter through East Asia and South Asia. Investments during the fourth quarter will dip slightly from the third quarter high of $64 billion, though more projects are on the books.

During the fourth quarter, project starts will be dominated by the steel industry and the mining industry, each accounting for approximately $18 billion and $7 billion, respectively. More than half of the region's starts will be grassroot builds, up almost 85% from the first quarter.

China, leading the East Asia market region, will account for approximately 47% of Asia's projects. Though projects are varied, most of the region's new mining projects will start in China next quarter. South Asia, led by India's expanding steel industry, will account for the most steel and cement project starts.

Southeast Asia's Metals & Minerals Industry has shown significant growth this year through capital project starts. The number of projects has risen each quarter throughout the year, denoting improved market region coverage and trends of an emerging market, even though investments have fluctuated from quarter to quarter. Steel, gold mining, cement and aluminum projects will be key investments during the third quarter. The Middle East has also seen market growth this year, primarily driven by major steel and aluminum expansions.

With global demand growth rates exceeding 5% annually through 2020, the Middle East and Southeast Asia, along with Brazil, are expected to be the primary drivers due to growing automobile industries and urbanization. One of the largest investments for next quarter is a $5 billion Phase II expansion planned for an aluminum smelter facility in the United Arab Emirates. East Asia's aluminum growth is expected to slow as demands falls and surpluses rise.

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