1 Electronic Detonator Key Raw Materials Analysis
Electronic detonator mainly includes a tube shell, blasting line, electronic control module, detonating powder, and other parts. Among them, the electronic control module is the core component of the electronic detonator. The electronic control module can control the detonator detonation delay time, etc., and can realize the ignition component status test and controller communication functions. The working principle of the electronic detonator is that the special detonator of the electronic detonator charges the capacitor inside the electronic control module. The detonation command is sent to the capacitor inside the electronic control module. Then the electronic control module discharges the bridge wire. The heat of the bridge wire will ignite the gunpowder.
The electronic control module comprises a main control chip, capacitors and peripheral protection devices. The main control chip can realize self-test of functions and performance parameters and precise control of detonator detonation delay, online authorization of identity information code, and special detonator detonation password. Therefore, for the Electronic Detonator industry, shell metal materials, blasting wires, detonating charges, chips, capacitors, etc. are the company’s main raw materials.
2 Electronic Detonator Market Dynamics
Table Industry Trends
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Item |
Descriptions |
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Production automation |
Electronic Detonator production is a high-risk industry, and an accident may cause serious casualties and property losses. With the development of automation technology, Electronic Detonator Company still strengthens the research and development of fully automatic production technology. The fully automatic electronic detonator production line adopts an intelligent control system and a safety monitoring system to realize the automation and intelligence of detonator production. During the production process, the system will automatically detect the quality and safety of the detonator, thus ensuring production safety. In general, the fully automatic electronic detonator production line can realize fully automated and intelligent detonator production, thereby improving production efficiency and ensuring production safety. In terms of production efficiency, the fully automatic electronic detonator production line uses advanced automation technology and intelligent control systems to achieve full automation of detonator production. Compared with the traditional detonator production line, the fully automatic electronic detonator production line does not require manual participation, reducing waiting time and operating links during the production process, thus improving production efficiency. In general, fully automatic electronic detonator production technology provides the industry with advanced technical support and solutions, promotes the digital transformation of the industry, ensures production safety and improves production efficiency, and is one of the trends in industry development. |
|
Continuously strengthen research on high-stability and reliability products |
As the Electronic Detonator market develops, competition is becoming increasingly fierce. Electronic Detonator companies have begun to use a variety of methods to improve their competitiveness. To this end, Electronic Detonator industry companies need to further innovate and increase R&D investment, accelerate new product upgrades and achieve product differentiation, provide value-added services to customers, continuously launch new products that create greater value for customers, and always remain in the market to maintain product leadership. For example, companies continue to strengthen product research for special application scenarios such as coal mines. In the field of coal mining, an Electronic Detonator is used in mine blasting operations where there is a risk of combustible gas and coal dust explosions. It requires high technical access conditions for electronic control modules, and it is necessary to ensure that the circuit has a sufficiently high safety design. Therefore, enterprises need to strengthen the research on high-stability and reliable industrial digital Electronic Detonator and industrial Electronic Detonator products suitable for applications in special places such as underground coal mines. |
Table Market Challenges
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Item |
Descriptions |
|
High qualification barrier |
Judging from the characteristics of the entire industry, the qualification barriers required by the Electronic Detonator industry are high. From the perspective of business model, Electronic Detonator’s licensing system runs through the entire process of product production, sales, purchase, transportation and blasting operations. First of all, from the production point of view, Electronic Detonator manufacturers need to obtain a production license before they can produce. Secondly, from the perspective of sales, sales companies must obtain relevant sales licenses before they can sell civil explosives. Therefore, from the perspective of the entire production and sales process, Electronic Detonator’s license requirements are strict and the qualification barriers are high. Strict licensing system and high qualification requirements are one of the challenges facing the development of the Electronic Detonator industry. |
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Raw material price supply and fluctuations |
The main raw materials required for the company’s production include shell metal materials, blasting wires, chips, capacitors, etc. Among them, chips and capacitors are one of the main raw materials produced by the company. The risk of supply and price fluctuations of major raw materials will have a significant adverse impact on the company’s continued profitability. The industry characteristics of Electronic Detonator manufacturers make them dependent on major suppliers for raw material procurement. If there are adverse changes in the company’s cooperative relationship with these major suppliers, or there are adverse changes in the operating and financial conditions of the major suppliers, or if the major suppliers undergo regular or unscheduled production maintenance, the company may not be able to timely and adequately purchase normal products quantity. At the same time, raw material and price fluctuations will also have an impact on the company’s production costs. If the price of raw materials rises, it will cause the production cost of Electronic Detonator to rise and reduce the profit margin of the product. The company’s production and operation plan will be adjusted. All in all, price fluctuations of raw materials are one of the risks faced by industry companies. |
3 Electronic Detonator Market Sales Model
From the perspective of the sales model, the electronic detonator can be divided into two sales models: distribution and direct sales. Due to the particularity of the electronic detonator, the current mainstream sales model in the industry market is direct sales, with manufacturing companies directly establishing contact with downstream customers. Downstream customers sign purchase contracts with production companies and purchase Electronic Detonator directly from the production companies.
4 Major Customers of Electronic Detonator with Contact Information
The major customers for electronic detonators include Vale, Rio Tinto, BHP, Yamana Gold, Codelco, and China Shenhua.
Table Major Customers of Electronic Detonator with Contact Information
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Customers |
Contact Information |
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Vale | Web: www.vale.com Tel: 55-21-3485-5000Add: Praia de Botafogo, 186 Rio De Janeiro, RJ 22250-145 Brazil |
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Rio Tinto | Web: www.riotinto.comTel: +44 207 781 1623Add: 6 St James’s Square London SW1Y 4AD UK |
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BHP | Web: www.bhp.comTel: +61 3 9609 3333Add: 171 Collins St, Melbourne VIC 3000, Australia |
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Yamana Gold | Web: www.yamana.comTel: 1 416 8150220Add: Royal Bank Plaza, North Tower, 200 Bay Street, Suite 2200, Toronto, Ontario, M5J2J3 |
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Codelco | Web: www.codelco.comTel: +56 2 2252 6119Add: Huérfanos 1270, 8340424 Santiago, Región Metropolitana, Chile |
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China Shenhua | Web: www.csec.comTel: (86-10) 58131088.Add: 22 West Binhe Road, Andingmen, Dongcheng District, Beijing |
5 Introduction to Major Industry Players
‘Orica’
In 2023, Orica’s production of electronic detonators was 7,641 units, with a price per unit of $36.4. The revenue was $278.02 million, and the gross margin was 33.60%.
Orica is one of the world’s leading mining and infrastructure solutions providers. From the production and supply of explosives, blasting systems, mining chemicals and geotechnical monitoring to cutting-edge digital solutions and comprehensive range of services, Orica sustainably mobilize the earth’s resources. 07 Sep 2023, Orica is taking another step towards its purpose to sustainably mobilise the earth’s resources by announcing the commercial release of the world’s first lead-free non-electric detonator range, Exel™ Neo. Global technology leader and sole manufacturer of non-electric detonators in the Nordics, Orica has upgraded its premium Exel™ product range to a safer and more sustainable product by removing lead while maintaining the same consistent and reliable product performance.
Table Orica Electronic Detonator Production, Revenue, Price and Gross Margin (2019-2023)
|
Orica |
2019 |
2020 |
2021 |
2022 |
2023 |
|
Production (K Units) |
4787 |
5452 |
6222 |
6922 |
7641 |
|
Price (USD/Unit) |
33.8 |
33.0 |
32.0 |
37.0 |
36.4 |
|
Revenue (M USD) |
161.60 |
179.96 |
199.10 |
256.12 |
278.02 |
|
Gross (M USD) |
53.78 |
62.26 |
68.57 |
88.52 |
93.42 |
|
Gross Margin |
33.28% |
34.60% |
34.44% |
34.56% |
33.60% |
Table Orica Electronic Detonator Product Portfolio
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Orica’s premium i-kon™ III system is the most sophisticated Electronic Blasting System on the market. It includes new features and equipment that enhances productivity with faster deployment and blast setup for both small and large scale blasting. The premium system is reliable even in harsh mining environmental and blasting conditions, significantly reducing blast delays. Connect
Protect
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In 2023, Dyno Nobel’s production of electronic detonators was 7,553 units, with a price per unit of $19.4. The revenue was $146.58 million, and the gross margin was 31.12%.
Dyno Nobel is a manufacturer of explosives. They provide the explosives used in coal and metal mining, quarry and construction as well as pipeline and seismic used for oil and gas exploration. The types of explosives manufactured includes ammonium nitrate, dynamite, electric, non electric and electronic detonators, detonating cord and cast boosters. They also produce surface and underground loading systems. In 2012 Dyno Nobel had over a million tons of ammonium nitrate capacity and over 30 manufacturing facilities on two continents. February 8, 2022, Dyno Nobel has introduced Ranger, DigiShot’s new electronic initiation system, that offers numerous benefits including greater safety and performance. It has been designed to reduce blasting delays and provide uniform rock fragmentation, and has twice the detonator capacity as its predecessor the DigitShot 300 at 600 dets (300 dets per channel at 40 meters).
Table Dyno Nobel Electronic Detonator Production, Revenue, Price and Gross Margin (2019-2023)
|
Dyno Nobel |
2019 |
2020 |
2021 |
2022 |
2023 |
|
Production (K Units) |
5030 |
5405 |
6269 |
6535 |
7553 |
|
Price (USD/Unit) |
19.3 |
18.8 |
18.3 |
19.7 |
19.4 |
|
Revenue (M USD) |
96.88 |
101.39 |
114.64 |
128.54 |
146.58 |
|
Gross (M USD) |
30.35 |
32.18 |
35.60 |
41.01 |
45.62 |
|
Gross Margin |
31.32% |
31.74% |
31.05% |
31.90% |
31.12% |
Table Dyno Nobel Electronic Detonator Product Portfolio
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DriftShot is Dyno Nobel’s latest practical innovation in its electronic initiation system product portfolio. DriftShot enables users to achieve the accurate timing benefits from electronic initiation while mimicking the easy tie-in of NONEL®. |
