Copper (Cu) Tubes Market in MENA, 2017
Copper (Cu) Tubes Market in MENA, 2017
11% Growth in HVACR Contributed by Smart Cities is a Key Driver
11-Oct-2018
South Asia, Middle East & North Africa
$1,500.00
Special Price $1,125.00 save 25 %
Description
Opportunity assessment of Copper tubes in MENA covers growth trends and future market potential for copper tubes in the fast growing HVAC segment. LME stabilisation of copper price has made copper tubes projects attractive and increased demand from the HVAC segment has led to OEM expansions. For a new market entrant, it is imperative to note that LME price of copper is very volatile and hedging is required to offset risk. Prudent project management for establishing new plants and new geographic entries is important to offset price fluctuations. OEMs expansion plans to meet attractive HVAC growth rates make this market an attractive entry option.
Table of Contents
Global copper tubes consumption expected to grow at 2% mainly driven by demand from housing and infrastructure development
Global Snapshot
Key Takeaways
Scope & Limitations
MENA Overview
Key Driver in MENA for Cu Tubes
Growth in Demand
Large pool of suppliers will assist the price sensitive MENA market to shift to renewable energy
Copper tubes will continue to be a major component of all cooling equipment in the long term; low threat of competition from substitute material in MENA
MENA has traditionally been an import dependent market; quality and price competitiveness are important criteria to be successful
LME accounts for 80% of cost component and has a direct impact on material carrying cost; copper remains the material of choice in MENA
Long term contracts exist for large OEMs; smaller producers procure 2MT MOQ
Large supplier base – differentiating factors are product quality, specifications, and brand image
Working directly and maintaining touch points with OEMs for product development will ensure higher returns
Successful Entry Strategies
Substitute Material—Aluminium Tubes Penetration to be “Low”, despite Copper’s LME Price Fluctuations
Copper continued to be in use despite LME price fluctuations; replacement threat with aluminium is low in MENA
Compactness and improved quality of ACR systems achieved with the Microgroove technology can make strides in future construction and infrastructure – increased consumption of Copper tubes
Consumption Driver 1
Consumption Driver 2—Mega Cities of the Future
Consumption Driver 3—Future Smart City Projects in the GCC by 2025
40% growth in air conditioner and refrigeration (ACR) due to smart city projects
Developments in GCC
Oil prices adversely impacted government budgets in 2016 and 2017; 5% VAT introduction in 2018 and 2019 as part of corrective measure
Decision Makers Spotlight—CEOs Perspective (1/2)
Decision Makers Spotlight—CEOs Perspective (2/2)
List of Acronyms Used
Maximize opportunities from existing products and markets; systematically explore new products, markets, including Inorganic Opportunities
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No Index | No |
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Podcast | No |
Author | Maya Abraham |
Industries | Cross Industries |
WIP Number | 9AB4-00-1C-00-00 |
Is Prebook | No |
GPS Codes | 9B14 |