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Oman’s Aluminum Wire Rod Market Outlook Report

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Aluminum wire rod is generally produced using one of three processes: continuous casting and rolling, direct casting, and extrusion. The production process affects the dimensions, shape, quality, and purity of the wire rod. Most of the wire rod produced through extrusion is packed in bundles, but wire rod that is produced through casting is often packed as coils. Most of the wire rod coil produced in Oman is through continuous casting and rolling. The process involves the continuous casting of billets and then rolling it into wire rod with the desired thickness.

The production of aluminum wires and cables accounts for the main consumption of wire rod. Mechanical applications such as rivets, screws, fences, and meshes are also large consumers. The development of the electrical grid (distribution and transmission lines) over the past years has led to growing demand for aluminum wires and cables, and wire rod as a result. Given the country’s outlook, the development of the electrical grid is expected to continue over the coming years, albeit at a slower pace compared to the past years.

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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 aluminum wire rod

Aluminum is a major substitution threat to copper; as the spread between the two metals widens with rising copper prices, the threat becomes stronger. Since the consumption of copper as wire rod for the production of wires and cables accounts for a large share of the red metal’s consumption, increasing prices of copper and copper products will support demand for aluminum wire rod. In addition to the price advantage of aluminum over copper, its specific conductance per unit of weight is higher than that of copper. This is crucial in power transmission lines and systems. As the transmission expands to remote areas where the distance between transmission towers needs to be greater, light-weight cables will prove beneficial. This will boost the demand for aluminum wires and cables, which are much lighter than copper ones.

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’s aluminum wire rod market

Oman Aluminium Processing Industries LLC (OAPIL) is the largest producer of aluminum wire rod in Oman and the largest player in the market. The slowdown of development in the electrical grid over the later years of the 2010s resulted in a significant fall in demand for aluminum conductors, wires and cables, as well as wire rod as a consequence. But as government spending in infrastructure increased, the consumption of aluminum wire rod recovered and set new highs. However, output remained stable thereafter. As a result, the country’s positive trade balance for aluminum wire rod declined and stabilized near the 30,000-tonne level. Given the forecasts about the consumers of aluminum wire rod in Oman as well as supply thereof, the trade balance is expected to hover around current levels, slightly decreasing over the coming years.

Breakdown of Oman’s aluminum wire rod market

Domestic demand for aluminum wire rod 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. Commercially pure aluminum holds the largest share of the market. In the second breakdown, products are distinguished based on diameter: 9.5mm, 12mm, and other sizes; the 9.5mm wire rod accounts for a major share of the market. Finally, using the third factor, aluminum wire rod is categorized based on applications in different industries. The power industry is the largest consumer of aluminum wire rod in Oman.

Key players in Oman’s aluminum wire rod market:

  • Oman Aluminium Processing Industries LLC (OAPIL)
  • Oman Cables Industries (SAOG)
  • Takamul Investments Co (SAOC)

Additional Information

Industry

Aluminum Products
Region

Oman
Report Type

Industry Report

Specifications

Report Attribute Details
The base year for estimation 2019
Historical data 2009-2018
Forecast period 2020-2025
Quantitative units Value in USD and Volume in Tonne
Report coverage Market Overview, Dynamics, Market Outlook, Risks to Forecast, Consumer Market, Industry Overview, Market Landscape, Competitive Landscape, Market Attractiveness, External Macro Environment Analysis
Segments covered Composition, Type, Application
Pricing and purchase options Please explore our purchase options to meet your exact research needs.

Reasons to Buy

  • Recognize the geographical distribution of import demand
  • Identify the current and future key players of the trading market
  • Achieve a better insight on potential target markets
  • Understand the behavior of major suppliers/customers either globally or regionally
  • Identify competitors as a feed for market analysis

Table of Content

  1. Executive summary
  2. Introduction
    • Objective
    • Market under study
    • Product
      • Product specifications
      • Consumption structure
        • Applications
        • Physical properties
      • Subjects discussed
      • Geographical scope under study
      • Study timeframe
      • Study currency
      • Potential audience
  1. Market dynamics
    • Market drivers
    • Restraints
    • Opportunities
    • Challenges
  2. Market overview
    • Market size
    • Industry capacities
      • Existing capacities
        • Capacity distribution
        • Geographical distribution of capacities
      • Future capacities
    • Output
      • Output trends
      • Operating rates
    • Consumption
      • Consumption trend
      • Consumption Share of domestic product
    • Trade
      • Exports
      • Imports
      • Trade balance
      • Market balance
    • Market breakdown by product type
    • Market breakdown by product type
    • Market breakdown by application
    • Inventory
      • Producers inventory
      • Consumers inventory
      • Traders inventory
  1. Market outlook
    • Market factors
      • Raw materials
      • Costs and prices
      • Competition
      • The government
      • Other factors
    • Future scenarios
    • Risks to forecast
  2. Consumer markets
    • End-user markets
      • Building construction
      • Infrastructure construction
      • Transportation manufacturing
      • Industrial equipment manufacturing
      • Durable goods manufacturing
      • Consumable goods manufacturing
    • Direct consumer markets
      • Major Direct consumers
        • Existing capacities
        • Drivers
  1. Export potentials
    • Destinations
      • Trade and insurance costs
      • Import market suppliers
      • Producers potential share
  1. Industry overview
    • Raw materials
      • The supply volume of raw materials
      • Supply channels of raw materials
      • Raw materials procurement costs
    • Cost structure of producers
    • Production cost curve
    • Industry value added
    • Generated new scrap
    • Technology
  2. Market landscape
    • Domestic sales markets
      • Pricing in the domestic market
      • Potential domestic demand
      • Trade agreements for imports
      • Foreign suppliers
    • Foreign sales market
      • Prices
      • Potential markets overview
      • Trade agreements for exports
      • Foreign customers
  1. Competitive landscape
    • Producers
      • Company profile
      • Revenue structure
      • Gross profit margins
      • Capacity, output and sales
    • Consumers
      • Company profile
      • Revenue structure
      • Gross profit margins
      • Capacity, output and sales
  1. Market attractiveness
    • Industry rivalry
    • Threat of new entrants
    • Threat of substitutes
    • Bargaining power of buyers
    • Bargaining power of suppliers
    • Conclusion of Porter analysis
  2. PESTEL analysis
    • Political factors
    • Economic factors
    • Social factors
    • Technology factors
    • Environmental factors
    • Legal factors
  3. SWOT analysis
    • Large-scale companies with favorable conditions
      • Short-term strategies
      • Long-term strategies
    • Large-scale companies with unfavorable conditions
      • Short-term strategies
      • Long-term strategies
    • Small enterprises with favorable conditions
      • Short-term strategies
      • Long-term strategies
    • Small enterprises with unfavorable conditions
      • Short-term strategies
      • Long-term strategies

List of Figures

  1. Output and consumption; 2009-2018
  2. Market share of product applications; 2018
  3. Market surplus; 2019-2025
  4. Production process flowchart
  5. Market size; 2009-2025
  6. Existing capacity; 2009-2018
  7. Capacity distribution; 2018
  8. Geographic distribution of capacities; 2018
  9. Development of future capacity; 2009-2025
  10. Amount of output; 2009-2025
  11. Operating rates of production plants; 2009-2025
  12. Amount of consumption; 2009-2025
  13. Consumption share of domestic product; 2009-2025
  14. Exports of product; 2009-2018
  15. Imports of product; 2009-2018
  16. Historical trade balance; 2009-2018
  17. Future Market balance; 2021-2025
  18. Market output breakdown by alloy type; 2009-2025
  19. Market consumption breakdown by alloy type; 2009-2025
  20. Market balance breakdown by alloy type; 2009-2025
  21. Market output breakdown by product type; 2009-2025
  22. Market consumption breakdown by product type; 2009-2025
  23. Market balance breakdown by product type; 2009-2025
  24. Market consumption breakdown by application; 2009-2025
  25. Inventories of raw materials and products at producers factories; 2009-2018
  26. Consumers’ inventory of product; 2009-2018
  27. Traders’ inventory; 2009-2018
  28. Production forecast, according to raw materials and sales analysis; 2019-2025
  29. Market surplus; 2019-2025
  30. The share of end-user industries in the consumption; 2009 and 2018
  31. Changes in the end-consumption of extrusion products; 2018 vs 2025
  32. Applications in building construction industry; 2018
  33. Applications in infrastructure construction industry; 2018
  34. Applications in transportation manufacturing industry; 2018
  35. Applications in industrial equipment manufacturing industry; 2018
  36. Applications in durable goods manufacturing industry; 2018
  37. Applications in consumable goods manufacturing industry; 2018
  38. Capacity distribution structure of direct consumers; 2018
  39. Existing capacities of direct consumers in each province; 2018
  40. Suppliers of the export potential destination; 2018
  41. Historical exports to the export potential destination and future potential; 2016-2025
  42. Up-stream domestic supply; 2009-2018
  43. Raw materials domestic supply; 2009-2018
  44. Supply channels of producer plants
  45. Spot price of raw material in the market; 2009-2025
  46. Cash cost structure for production the product; 2018
  47. Production cost curve of the plants; 2018
  48. Gross value added of the industry; 2009-2018
  49. Generated new scrap; 2009-2018
  50. Sales channels
  51. Realized price of the product in the market; 2009-2025
  52. Potential demand of each province; 2018
  53. The main foreign suppliers to the market; 2009-2018
  54. FOB price vs domestic market; 2009-2025
  55. Map of global major importers > 20,000t; 2018
  56. Major foreign customers; 2009-2018
  57. Revenue structure of the producers; FY2018
  58. Sales income and gross profit margin of the producers; FY2009-2018
  59. Output and sales of the producers; FY2009-2018
  60. Revenue structure of the consumers; FY2018
  61. Sales income and gross profit margin of the consumers; FY2009-2018
  62. Output and sales of the consumers; FY2009-2018
  63. SWOT matrix for large-scale companies with favorable conditions
  64. Strategies positioning for large-scale companies with favorable conditions
  65. SWOT matrix for large-scale companies with unfavorable conditions
  66. Strategies positioning for large-scale companies with unfavorable conditions
  67. SWOT matrix for small enterprises with favorable conditions
  68. Strategies positioning for small enterprises with favorable conditions
  69. SWOT matrix for small enterprises with unfavorable conditions
  70. Strategies positioning for small enterprises with unfavorable conditions

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