The GCC’s demand for iron and steel casting is expected to grow by 5 per cent over the next five years, according to a report from Frost & Sullivan, a business consulting firm involved in market research and analysis.
The growth is mainly driven by demand in valves, pumps, cement, mining, and aluminium smelts, with Saudi Arabia and the UAE driving the market in terms of local production and consumption, said the Frost & Sullivan’s industry docket, ‘Ferrous Castings Market Outlook in GCC, 2017’.
Companies that cater to high-end engineering castings at a reasonable price will gain a competitive advantage, it added.
The report explores drivers, challenges, opportunities, value chain dynamics, and application segments within the GCC countries. Cement and mining, pumps and valves, aluminium smelts, producers and production, consumption patterns, capacities, and import-export needs and challenges are also assessed.
Vikram Rajeev, metals and minerals program manager, Frost & Sullivan, said: “Application engineering and working directly with end customers will ensure better quality and higher touch points.”
“Companies should look toward adopting a process-oriented business model to reap higher returns,” he said.
As buyers have several producer options to choose from, their bargaining power increases, revealed the report.
Machining facilities producers have a clear edge over sole raw casting producers. Companies should look toward value-addition to secure business by: lowering inventory carrying costs; developing operational efficiencies; implementing just-in-time delivery; providing flexible commercial terms; and adopting product customisation with technical services.
“Foreign direct investment in the mining industry, housing infrastructure development, and growth in industrial sectors are factors fuelling strong demand uptake for ferrous casting parts,” noted Rajeev. – TradeArabia News Service