Material Substitution
Substitution is the action of replacing traditional materials with alternatives, where the alternatives offer genuine advantages in cost, performance, sustainability or availability. This practice is increasingly prevalent across industries as companies strive to innovate and respond to environmental and economic pressures. Drivers can be, for example, price, light-weighting for fuel efficiency, environmental concerns. Advances in material science and technologies have led to the development of high-performance materials which outperform traditional options.
MM Markets Substitution Report is based on an extensive international survey of copper and aluminium buyers and users. Speaking to a wide range of survey participants enables the best feedback on trends happening now, and trends in the near future. Detailed feedback enables us to precisely update our indicators. Focused on price, the following bullets are extracted from initial survey work in the Substitution Report.
For the full picture, we are able to offer full (drivers, factors and detailed datasets) and bespoke analysis. A basic overview report is also available. Please do contact us for more details!
- In today’s business environment, the decision to substitute tends to require a life-time calculation approach.
- For most buyers/users, it makes sense to first investigate the absolute and relative material costs.
- Survey respondents said that material price is mainly driven by macroeconomic factors. Energy transition is the long-term price driver.
- 2024 was a year of political and financial insecurities however Q4 brought some material economic assurances, in some geographic regions.
- Reflecting on the increased material/gauge requirements for aluminium in electrical applications, requirements in order to achieve similar performance, copper is still relatively more expensive.
- Historic price development for both copper and aluminium highlights the large absolute price difference but also the fact that copper price is relatively more volatile.
- A tracking factor for material decision makers/procurement is development of the price ratio between copper and aluminium.
- There are applications where increased performance requirements lead buyers and users back to copper.
1. Substitution Presentation
A summary of the copper/aluminium messages and key substitution information gathered during the survey to provide an overview of substitution. A low cost option perfect for those seeking high level messages without in-depth data sets.
2. Substitution Presentation & Full Substitution Datasets
This package, in addition to the presentation, includes the full substitution datasets in terms of % YoY development and substitution loss in tonnage, for semi-fabricated product categories and geographic regions. The package includes:
- Datasets
- Investigation of substitution drivers and relevance of absolute and relative material prices as substitution drivers.
- Highlight applications and geographic regions with specific substitution developments.
- Trend analysis for substitution.
3. Customised Investigation & Additional Datasets
The work can be extended with specific information / investigation, for example:
- Copper, aluminium substitution data analysed for specific geographic regions and semis products.
- Copper, aluminium substitution data for end use applications.
- Market shares for geographic regions, copper applications etc.
- Deep dive into certain applications, geographic regions or trends.
- Regulatory investigation.
- Long-term market and substitution forecast.
- Conclusions for marketing, investment and procurement.
- Any further specific data required for demand modelling.
Please contact us for detailed prices and options.
