Summary
Blasting off: Despite volatile markets, technology innovation has lit the fuse on revenue growth
Abstract
Explosives Manufacturing in Australia
The Explosives Manufacturing industry is intimately linked to Australia’s resources sector. The industry provides almost three million tonnes of blasting explosives to Australia’s mining and quarrying sectors each year. The industry’s reliance on markets that are prone to cyclical fluctuations makes its performance volatile. This volatility has been exacerbated by a series of external shocks in recent years. These include the COVID-19 pandemic, which affected supply chains across Australia’s mining sector; geopolitical tensions between Australia and China, which sparked disruptions to the Australian resource and commodity export trade; and the Russia-Ukraine conflict, which has pushed up input prices. Although larger explosives manufacturers use rise and fall clauses to counter price volatility in ammonia and natural gas prices, profit margins have come under pressure in recent years.
Industry companies manufacture explosives. The industry’s main product is commercial explosives, including ammonium nitrate-based explosives. Other products manufactured include initiating systems, propellants, pyrotechnic products like fireworks and flares and explosives for military use. Explosives manufacturers also produce accessories like blasting and detonating caps, fuses, cords and detonators.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
