MM Markets Substitution Report is based on an extensive international survey of 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.
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- 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.
