About Aluminum Wire Rods
Aluminum wire rod is continuously cast from liquid aluminum. The diameter of the rod is reduced by extruding it through a series of dies to obtain a rod with a diameter of 9.5 mm up to 32 mm by roller and drawing processes. Aluminum wire rods are used in various applications, such as in cables and conductors due to their high electrical conductivity, lightweight, and resistance to corrosion.
Technavio’s analysts forecast the aluminum wire rods market in Europe to grow at a CAGR of 1.4% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the aluminum wire rods market in Europe for 2017-2021. To calculate the market size, the report considers the revenue generated from the sales of aluminum wire rods.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Aluminum Wire Rods Market in Europe 2017-2021
Technavio recognizes the following companies as the key players in the aluminum wire rods market in Europe: Alcoa, General Cable, Norsk Hydro, RUSAL, and Vimetco.
Other Prominent Vendors in the market are: Hindalco, Hongfan Holdings, INOTAL, Lamifil, National Aluminium Company, NPA Skawina, Oman Aluminium Processing Industries, Southwire, TRIMET Aluminium, and Vedanta.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is increase in average capacity utilization levels of conductor manufacturers. Currently, the aluminum conductor and cable manufacturers are operating at 60%-70% capacity utilization levels due to the fluctuating demand. The demand fluctuates because the execution phase of T&D lines is generally long, and the procurement of aluminum wire rods for use in conductors is directly linked to the order cycle of conductors, which is dependent on government investments.”
According to the report, one of the major drivers for this market is competitive prices and favorable properties of aluminum. Although copper has better conductivity properties than aluminum, there is a possibility that aluminum will replace copper in T&D applications in future. This is attributable to the fact that aluminum is cheaper and its price is not as volatile as that of copper. Aluminum is being successfully used as a conductor in various end-use applications, such as low-voltage transformers.
Further, the report states that one of the major factors hindering the growth of this market is volatile raw material prices. Aluminum and copper are the primary metallic raw materials used in cables and conductors. The cost of these raw materials accounts for a major percentage of the total manufacturing cost of power cable vendors. As per the prices of these metals in December 2015, material costs accounted for 75% to 85% of the total production cost. The total cost of copper and aluminum metals account for about 50% of the total production cost.
Alcoa, General Cable, Norsk Hydro, RUSAL, Vimetco, Hindalco, Hongfan Holdings, INOTAL, Lamifil, National Aluminium Company, NPA Skawina, Oman Aluminium Processing Industries, Southwire, TRIMET Aluminium, Vedanta.