Oman’s Aluminum Casting Parts Market Outlook Report

Product Description

With a per-capita GDP of $32,400 in 2019, Oman was the fifth largest economy in the region that year, behind Qatar, the United Arab Emirates, Bahrain, and Saudi Arabia. The country’s economy has steadily grown over the past years, and according to the Oman Vision 2040, economic growth is expected to continue over the coming years. The country’s logistical location that connects the Gulf Cooperation Council (GCC) countries to the world is one of the major factors in expanding its relations and trade with other countries; the free trade agreement with the US since 2009 is one example. Oil and petrochemicals account for a major portion of the country’s exports. In 2019, about 70% of the country’s total export revenues came from oil and oil-related products. Iron and steel as well as organic chemicals are also major contributors to the country’s total exports. The aluminum industry has moved up to the fifth place in the country’s exports and has had significant growth and development in downstream capacities over the recent years. A considerable portion of downstream capacities are located near the country’s primary smelter Sohar, which has an annual capacity of 375 thousand tonnes; this makes hot metal easily available to downstream producers, reducing their costs.

Market drivers of Oman’ aluminum casting parts

Oman has one of the largest auto markets in the Middle East. Per-capita consumption of cars in the country is above that of Saudi Arabia and Iran. As the number of existing cars increases, demand for maintenance (also known as the aftermarket) is also growing. Thus, the country is moving towards new parts, rather than new cars; this can drive demand for aluminum casting parts.

Oman reported its first case of Covid-19 in late March 2020. Before long, in April, social distancing and lockdowns were implemented. As a result, the country’s mobility index dropped more than 30%. As the pandemic continued to spread, lockdowns were extended into mid-April, but activities were gradually resumed under certain protocols. Lockdowns are expected to continue, significantly disrupting industrial performance and eventually leading to a decline in demand for aluminum semis; a recovery might be likely in the near term.

Overview of Oman’ aluminum casting parts market

Despite the growth over the past years, the production of aluminum casting parts in Oman has slowed down over the recent years. As demand for new auto parts increases and existing cars age, demand for aluminum casting parts is expected to increase, especially in auto parts. Thus, new capacities are expected to be built, leading to higher output. However, the current economic conditions due to the coronavirus will defer that scenario at least until the medium term.

Breakdown of Oman’ aluminum casting parts market

Domestic demand for aluminum casting parts in the forecast timeframe as well as the previous period has been broken down using three factors. The first factor breaks down the market into three categories based on alloy material: commercially pure aluminum, heat-treatable alloys, and non-heat-treatable alloys. Past and future trends for each type of material have been analyzed. Heat-treatable alloys hold the largest share of the market. In the second breakdown, products are distinguished based on production processes: die casting, permanent mold casting, sand casting, and other casting methods, with die casting and permanent mold casting taking the largest share in the market. Finally, using the third factor, aluminum casting parts are categorized based on their applications in different industries. The construction sector is the largest consumer of aluminum casting parts in Oman.

Key players in Oman’ aluminum casting parts market:

• Oman Aluminium Cast LLC (OAC)
• Synergies Castings