MARKET INSIGHT
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Mining Downstream – Copper
MARKET INSIGHT
Segment Rational
RATIONAL
Copper industry is vital to enabling downstream development of other sectors (e.g., construction, automotive, renewables, aerospace) by providing critical raw materials and stimulating the manufacturing industry. Both the domestic and regional Copper markets have significant growth potential across various product segments. Today, KSA has capabilities at both ends of the Copper value chain through various mines upstream and large capacities in downstream wire and cable.
Segment Trends and Value Proposition
SEGMENT TRENDS
Decarbonization.
Energy Reforms.
Digitalization.
Circular Economy.
Demand from EVs, renewables and storage for Copper.
Value Proposition
• Global Refined Copper consumption reached 24 mn metric tons in 2020 and is expected to grow by 1.6% annually over the next decade.
• KSA’s downstream product demand is projected to increase from 312 kt in 2019 to 572 kt in 2030, representing a 5.7% annual growth rate, mainly driven by infrastructure projects, the power industry, and development.
• Largest GCC market, strong localization push in Established manufacturing downstream (cables & wires).
Segment Value Chain
Global Refined Copper Consumption by Region
• Global Refined Copper consumption projected to increase by ~1.6% over next decade with Middle East region growing faster at ~3.7%.
• China is by far the biggest importer of copper and articles with the majority coming form Chile and various Asian countries.
• Export market is more fragmented and geographically distributed across South America, North America, Asia, Africa and Europe.
KSA Downstream Copper Product Demand
• Infrastructure projects, power industry and developments in new industries (e.g., automotive, renewables) will drive strong demand growth for copper after years of diminishing demand.
• Copper wires and cables, having countless uses in various industries, will remain as the main product of demand.
KSA Imports by Product
• Slow down in construction and infrastructure projects affected overall volume of imports.
• Wires and cables are the most imported products, due to wide range of end use applications.
KSA Exports by Product
• Increase in exports is mainly driven by wire and cable export.
• Exports of other product categories are very insignificant, due to limited downstream manufacturing capabilities of KSA.
KSA Copper Scrap Net Exports
KSA is a net exporter of copper scrap; lacking midstream capabilities to transform scrap into higher value-add
KSA Wire and Cable Demand by End Use
Key takeaways
• Constituting ~90% of copper product demand; demand for wire & cable decreased in alignment with overall demand due to slow down of construction sector and infrastructure projects.
• Wire & cable demand is expected to show strong growth in the next decade with new infrastructure projects, growing telecommunication and transportation industries.
Demand and Capacity for Different Copper Products
KSA has oversupply in wire and cable but lacks manufacturing capacity in other products, particularly copper tubes.
Top 5 Global Imports and Exports of Copper
The data and information provided through Daleel platform are for indicative purpose, the provided data and information can be assessed further and analyzed as part of the feasibility studies. In addition, following are other key sources of information that can be used for business case development.
Key Sources for Data
National Geological Database
Reliable national geological and topographic data repository for the whole kingdom of Saudi Arabia including geological and topographic maps, Mineral Occurrences Documentation System (MODS), geochemistry and geophysics data, borehole data, surface samples data and more.
Invest Saudi
For information about investment opportunities in the kingdom to both foreign and domestic investors, as well as private sector businesses please visit Invest Saudi
Tariff Rates and Data
Through the website of the Zakat, Tax and Customs Authority, you can find the tariff rates and data for all kinds of products.
Import Data
Through the website of General Authority for Statistics, you can find detailed data on Import Statistics for all kind of goods.
Export Data
Through the website of General Authority for Statistics, you can find detailed data on Export Statistics for all kind of goods.
Factories Directory
The Factories Directory is provided by the National Industrial Information Center to enable the user to inquire about factories in the Kingdom by activity, production and location, in addition to other data and information.
Ministry of Economy And Planning
A unified platform to present and analyze the latest economic and social the kingdom and its regions in visually interactive ways that facilitate understanding of the Saudi economic landscape.