The Oxygen Free Copper Market was estimated to value USD 21,078.90 Million in 2021 and is projected to grow at a CAGR of 6.9% during the forecast period, as per a recent comprehensive market study by Quince Market Insights. Oxygen free copper, can also be referred as oxygen free high conductivity copper. Oxygen-free copper is a group of wrought copper alloys which are refined by electrolytic process and also shows high conductivity. Electrolytic refining is particularly in order to low the oxygen content to or below 0.001%.
During the process of drawing copper wires with a high oxygen content pose a risk of wire breaks. The oxygen-free copper has far better processing properties during the manufacturing process. Due to it’s adaptability, it is extensively used in electronic products. Oxygen-Free Copper (OFC) is one of the cleanest forms of copper which is available for a variety of commercial and industrial applications. Fuel hydro and atomic they both are connected to OFC.
In manufacturing and engineering parts are also the most frequent users of oxygen-free copper. It is used in important engineering, tooling, and precision activities owing to its long-lasting welding and brazing properties. Makers are preoccupied with item testing to ensure that OFC security requirements are fulfilling manufacturing programs, including each warm running and bloodless working structure. The market will develop in the coming days as a result of these industrial demands.
Technological advancements, requirement as well as the usage for pure copper alloys & metals, different grades of oxygen-free copper are used in manufacturing equipment and component in electronic & electrical industry. Properties of oxygen-free copper, like its electrical and high thermal conductivity which make it suitable to be used in semiconductors, superconductors and computer circuit boards (PCBs), among various other applications.
The electronics & electrical industry is anticipated to grow rapidly in the projected period due to the continuous technological advancements and research & development (R&D) in the industry. Worldwide the demand for electronics & electrical goods will uplift the growth of oxygen-free copper. Usage of pure or oxygen-free copper in nanotechnology will also lead to the demand for this market. In addition, this industry provides its products to various other industries, like the automotive, medical, and telecommunications. These industries need a material which could be electrically conductive. They are also remarkable consumers of oxygen-free copper products. The electrical & electronics industry is a major factor which is driving growth of the oxygen-free copper market.
Electrolytic tough pitch (ETP) copper is the most preferred copper, which is extensively used in the electrical & electronic industry. ETP is a very good substitute for oxygen-free copper as it have similar application and properties within it. ETP copper has properties such as electrical conductivity (100- 101.5% IACS), hardness (HV) (45-155), tensile strength (220- 385 N/mm2), proof strength (60-325 N/mm2), and thermal conductivity (394 W/moC).
Furthermore, ETP copper is extensively used in applications, such as motor windings & components, busbars, and transformer windings & components. ETP copper which are highly purified finds their applications in signal cable braid shielding and automotive cables. ETP are cheaper as compare to oxygen-free copper. Manufacturers of goods in electronics & electrical and other industries opt for ETP copper instead of oxygen-free copper where it is suggested to use oxygen-free copper.
TABLE 1: GLOBAL OXYGEN-FREE COPPER MARKET OVERVIEW
COVID-19 Impact on the Global Oxygen-Free Copper Market:
The oxygen-free copper market has been negatively impacted because of the COVID-19 pandemic due to its dependence on automotive, electronics, and other sectors. Export for electronic devices like smartphones, computers, and others have hindered because of the supply chain issues. Many electronic companies have either limited their production or shutdown owing to the risk of infection in the workforce where oxygen-free copper was widely used for twisting or winding application. This has hindered the demand for oxygen-free copper market in the COVID-19 period.
Furthermore, the medical sector had shown an impressive uplift during the COVID-19. The healthcare sector have witnessed an increase in demand for advanced digital instruments where oxygen-free copper tubes are used in vacuum application for CT scanners, digital X-Ray machines, MRI machines, and others. These factors have heightened the position of oxygen-free copper market in the medical sector.
Moreover, the rising sale of laptop, tablets, smartphones, and other customer electronic devices during the first half of 2021. This factor has estimated to amplify the performance of oxygen-free copper market for consumer electronics section in the post COVID.
Segmentation:
By Grade Type
On the basis of grade type, the Global Oxygen-Free Copper Market is bifurcated into Cu-OF and Cu-OFE. The CU-OF grade type hold the largest market share in terms of revenue in 2021. Developing as well as developed countries both are witnessing a rapid upsurge in electrification activities where CU-OF grade oxygen-free copper serves as an excellent material for manufacturing anodes. It is expected to increase the sales of CU-OF grade oxygen-free copper in electrical sectors and hence creating profitable opportunities for the market.
By Product
On the basis of product, the Global Oxygen-Free Copper Market is categorized into wire, strips, rod, and busbars. The wire the largest revenue collector and it is anticipated to remain same during the projected period. The oxygen-free copper wires are extensively used in the electrical & electronics sector. Worldwide wire manufactures use oxygen-free copper wire to minimize undesirable voids present within the wires that hampers the transmission process. It have various characteristics like long service life, dimensional accuracy, crack-free bends, and high conductivity.
By Industry
On the basis of industry, the Global Oxygen-Free Copper Market is bifurcated into electronics & electrical, automotive, and others. The electronics & electrical dominates the market and is expected to grow during the projected period. Oxygen-free copper are extensively used in electronics & electrical sectors as hollow conductors, transistors component, wire & coaxial cables, and others. It is utilized as wires & coaxial cables in television computer and other electronic devices for current transmission purposes. It is also suitable in manufacturing electrical & electronic equipment which operate in vacuum operators like CT scanners, X-Ray tubes, and others.
By Region
Based on the region, Global Oxygen-Free Copper Market is divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific has accounted for the largest market share during the projected period. High demand of consumers for electronic devices like laptop, smartphones, televisions, and others where oxygen-free copper is extensively used as an important an essential material for twisting or winding the application had boost the market growth.
TABLE 2: GLOBAL OXYGEN-FREE COPPER MARKET OVERVIEW
Major Developments in the Global Oxygen-Free Copper Market:
- In February 2020, Mitsubishi Materials Corporation announced that it reached an agreement to acquire 20% stake in the Mantoverde copper mine from Mantos Copper Holding SpA (Chile) and participate in the Mantoverde Development Project. In consideration for the 30% stake, Mitsubishi Materials Corporation will contribute USD 263 million at closing of the deal. The company will receive offtake rights of 30% of copper produced, proportionate to its ownership stakes, and will receive the produced materials in the form of copper concentrate.
- In December 2019, the three companies JX Nippon Mining & Metals, Mitsui Mining and Smelting Co., Ltd., and Pan Pacific Copper Co., Ltd., announced that they have reached a basic agreement, pending approvals by the relevant authorities, to revise their joint structure for copper operations as of April 2020. Under the agreement, JX Metals and Mitsui Kinzoku are to form their own subsidiaries, the copper smelting and refining functions of Saganoseki Smelter & Refinery and Hitachi Refinery, operated by Pan Pacific Copper, are to be transferred to JX Metals, while Hibi Smelter and Tamano Smelter of Hibi Kyodo Smelting Co., Ltd. (in which Pan Pacific Copper has an equity share of 63.51%) are to be transferred to Mitsui Kinzoku.
- In July 2019, KME informed that it executed the agreement signed on March 11, 2019 with ECT-European Copper Tubes Limited, after fulfillment of the conditions precedent envisaged therein, to purchase 49% shareholding in Tréfimétaux SAS (France) and, therefore, obtain again 100% share control of the company. The acquisition price paid at closing was USD 2.24 million.
- In November 2018, Mitsubishi Materials Corporation, which indirectly holds a 10% interest in the Los Pelambres copper mine in Chile, has approved an expansion project to increase its copper production. The construction started at the beginning of 2019 and first production is expected in mid-2021. The throughput at the mine will be increased to 190,000 tonnes of ore per day. Annual copper production will increase by an average of 60,000 tonnes over the first 15 years of operation. The expansion project includes increasing the capacity of its concentrators and the construction of a desalination plant, with the total capital cost expected to be approximately US USD 1.3 billion. Through this expansion project, the company strives to raise the value of its important asset, the Los Pelambres copper mine, and achieve a stable supply of its copper concentrates.
Major Companies operating in Global Oxygen-Free Copper Market:
KGHM Polska Miedz SA (Poland), Hitachi Metals Neomaterials Ltd. (Japan), Zhejiang Libo Holding Group (China), Mitsubishi Materials Corporation (Japan), Metrod Holdings Berhad (Malaysia), Aviva Metals (US), KME Germany GmbH (Germany), and Sam Dong (South Korea).
Market segmentation
By Grade
- CU-OF
- CU-OFE
By Product
- Wire
- Strips
- Rod
- Busbars
By Industry
- Electronics & Electrical
- Automotive
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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