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China Dislodges Malaysia from American Microwave Oven Supply Chains


China Dislodges Malaysia from American Microwave Oven Supply Chains

IndexBox has just published a new report: ‘U.S. – Microwave Ovens – Market Analysis, Forecast, Size, Trends and Insights‘. Here is a summary of the report’s key findings.

Despite global logistical tensions amid the sharp container shortage, the U.S. continues to boosts microwave oven imports. Last year, American purchases spiked by +16.3% to $1.6B, reaching the highest level ever. In the first seven months of 2021, American imports reached 12.9M units, exceeding last year’s 12.1M units over the same period. China dominates American imports, supplying 95% of the total volume. In 2020, Chinese shipments to the U.S. jumped by +29% y-o-y to 22M units, while Malaysia saw a 19%-decline in supplies. Chinese microwave ovens thus drive out Malaysian products from the American market. 

American Microwave Oven Imports

In 2020, microwave oven imports into the U.S. surged to 23M units, increasing by +25% against the previous year’s figure. In value terms, microwave oven imports rose by +16.3% y-o-y to $1.6B (IndexBox estimates) in 2020. In the first seven months of 2021, American purchases reached 12.9M units against 12.1M units imported over the same period of 2020.

In 2020, China (22M units) was the main microwave oven supplier to the U.S., with a 95% share of total imports. Moreover, microwave oven imports from China exceeded the figures recorded by the second-largest supplier, Malaysia (1.2M units), more than tenfold.

In physical terms, Chinese supplies rose by +29% y-o-y in 2020. This year, imports from China continue to grow: over the first seven months of 2021, Chinese import volume reached 12.2M units, exceeding by +6.7% the figures of the same period of 2020.

Imports from Malaysia fell by -18% y-o-y last year. In the first half of 2021, Malaysian supplies tended to decline.

In value terms, China ($1.5B) constituted the largest supplier of microwave ovens to the U.S., comprising 89% of total imports. The second position in the ranking was occupied by Malaysia ($156M), with a 9.5% share of total imports.

In 2020, the average microwave oven import price amounted to $70 per unit, shrinking by -6.9% against the previous year. There were significant differences in the average prices amongst the major supplying countries. In 2020, the country with the highest price was Malaysia ($132 per unit), while the price for China stood at $66 per unit. In 2020, the most notable rate of growth in terms of prices was attained by Malaysia.

Source: IndexBox Platform

metal coil

Demand for Metal Coil Lamination to Expand Across Appliances Industry

Metal coil lamination industry trends will be significantly driven by the increasing demand from the appliances, metal construction, automotive, and food & beverage packaging sectors. There is an incessant requirement to enhance the appearance and durability of various products and components in these applications. Metal coil lamination refers to the process of applying colored PVC/PET films and electro-galvanized galvalume or stainless-steel to the metal coils to upgrade their visual aesthetics.

To add further, metal coil lamination machines offer maximum weatherability, fire & chemical resistance, durability, processability, non-toxicity, versatility, and are easy to maintain. These factors have increased their suitability in elevators, furniture, storage equipment, and upholstery.

As per estimates, the global metal coil lamination market size will reach a yearly revenue of more than USD 5 billion by 2026.

Higher deployment of metal to polymer film lamination

Industry share of the metal to polymer film segment was valued at a significant number owing to their growing preference over metal to metal coating. This is because thin polyester films render protection against outdoor exposure. This method of metal coil lamination changes the appearance of ordinary indoor metals to imitate far better-priced materials such as wood, stone, marble, and granite. For instance, Texcover Lamination Film is a superior polyester film that is extensively adopted to decorate coiled metals.

Major uses in appliances

The application of metal lamination coils in the appliances industry is likely to gain considerable traction. This is due to the antimicrobial and fingerprint resistance properties offered by the laminated coils. They also are effective to eliminate over 99% of bacteria that appear in the vicinity of the appliances. They also impart a new look to the appliances by coating their entire surface, interiors, hemmed edges, as well as tubes.

Rising adoption across automotive and metal construction

Demand for metal coil lamination in the automotive sector is expected to hit an exponential growth rate. This can be attributed to the provision of extended corrosion warranties to automotive manufacturers based on metal lamination. Furthermore, in the construction of automobiles, the metal laminated coils offer maximum protection to inaccessible cavities against corrosion.

The metal coil lamination market size across the metal construction applications will be valued at a substantial revenue share owing to their energy-efficient features. There is a growing focus to enhance the external look of wall panels, roofing tiles, and shakes. The laminated metal coils transform the look of metal panels and roofing materials to imitate copper patina, clay, weathered wood, and rusted metal.

Solution providers in metal coil lamination are keen on inorganic strategies like partnerships, mergers, and acquisitions to amplify their global penetration. These companies are also incorporating marketing initiatives like capacity expansions to gain a competitive edge over other industry players. For instance, Mitsubishi Chemical Corporation, in November 2020, signed a framework deal with Konfoong Materials (KFMI) and TCPR (Shanghai) Electro-Mechanical (TCPR) to transfer its business for light metal products.

Lienchy Laminated Metal Co., Ltd, Sika AG, Jindal Poly Films Ltd., Orion Profiles Ltd., Material Sciences Corporation, Berlin Metals, Toyo Kohan Co., Ltd, ArcelorMittal, and Celplast Metallized Products some of the other key participants in the sector.

The present COVID-19 pandemic considerably drew a negative outlook on the metal coil lamination industry share in the first phase of the industrial lockdown. However, the resumption of operations across the automotive and constructions could now add positive impetus to the industry forecast.

wire and cable

Electronic Appliance Demand to Influence North America Wire and Cable Market Forecast

The consistent need for high-speed internet services will enhance North America’s wire and cable market forecast, along with the higher adoption of IoT and smart devices. There has been a surge in the use of internet and telecommunication services as well as the incorporation of renewable energy sources with the expansion of the industrial sector.

Increasing demand for power supply from residential and commercial buildings and soaring investments in the implementation of smart grid infrastructure will boost the consumption of various types of electrical components in the coming years. Estimates suggest that the North American wire and cable market size will reach a yearly estimation of more than USD 40 billion by 2026.

High voltage networks will witness considerable deployment across the manufacturing sector owing to the rising need for bulk electricity transmission over long distances. The steady incline in developmental investments for various clean energy generation projects and augmenting demand for HVDC systems will stimulate the development of high voltage wire and cables in the U.S.

Furthermore, the rising production of power cables can be attributed to the intensifying governmental focus on generation as well as the transmission capacity of the cable components. Annual revenue from coaxial wire and cable technology in the North American market is anticipated to reach a significant share through the coming years owing to their high durability and ease of installation. Coaxial wire and cables ensure the transmission of large volumes of data at significant speeds and are extensively accessed by the internet and service providers in the region to effectively transmit video and audio data.

Consumer electronic applications are likely to gain traction in the overall industry over the coming years owing to the jump in household incomes and the decrease in electronic product costs. There has been a significant deployment of smart systems across the region. Consistent developments in the electronics sector have pushed the demand for multiple low-voltage components for products like smartphones, earphones, and Bluetooth speakers.

Wire and cable manufacturers in the North American geography are focused on new product launches, mergers, and acquisitions to gain a competitive edge over other participants while expanding their global presence. For instance, Belden, a leading wire and cable distributor, introduced the 10GXW Cable, a new CAT 6A cable that works on multi-gigabit connectivity and offers reliable connectivity infrastructure solutions that can be optimized for smart buildings.

The ongoing COVID-19 could have considerably influenced the regional trends owing to the excessive demand for high-speed internet with the regulation of work from home policies. Educational, healthcare, and services industries have brought in significant demand for reliable connectivity, putting a focus on strong cable infrastructure. Cablel Hellenic Cables Group, LAPP North America, Polycab, and Furukawa Electric Co. Ltd., are some of the major firms producing and supplying robust wires and cables across America.