During the next three years, suppliers will continue to reduce copper pipe and tube prices but at a slower rate than in the previous three years
Los Angeles, California (PRWEB) March 27, 2015
Copper pipes and tubes have a buyer power score of 3.9 out of 5, which indicates buyers have a distinct advantage over suppliers in price negotiations. According to IBISWorld market research analyst, Jeffrey Cohen, "The primary factors that have positively impacted buyer power during the past three years are declining prices for copper pipes and tubes, a low level of product specialization and low switching costs."
During the past three years, the world price of copper has experienced a significant decline. "Because copper is a primary input used in the copper pipe and tube production process, a decline in its price has caused suppliers to incur lower production costs," says Cohen. Because suppliers have incurred lower production costs, they have responded by reducing copper pipe and tube prices, which has benefited buyer power. Another factor that has benefited buyer power is that copper pipes and tubes are highly standardized. Because copper pipes and tubes are typically standardized products, buyers have more leverage during the negotiation process because they can switch suppliers if their current supplier is not offering competitive prices. Also, there are plenty of suppliers that are capable of providing buyers with copper pipes and tubes of a similar quality, widening the pool of capable suppliers from which buyers have to choose. Major vendors in the market include Freeport-McMoRan, Global Brass and Copper Holdings and Mueller Industries.
Lastly, the average level of switching costs in the copper pipes and tubes market is low, which further improves buyer power. Due to the standardized nature of copper pipes and tubes, costs associated with switching suppliers are low for buyers. For instance, although it is possible, it is unlikely that a new supplier will perform poorly with regard to providing buyers with the appropriate copper pipes and tubes. For more information, visit IBISWorld’s Copper Pipes & Tubes procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of copper pipes and tubes. Manufacturers produce copper pipes, which are used to transport fluids, and copper tubes, which are small and flexible with precise outside diameters. Suppliers of copper pipes and tubes include manufacturers and wholesalers. The primary types of buyers of copper pipes and tubes are contractors, manufacturers, plumbers and construction companies. Commercial CPVC pipes, concrete pipes and industrial PVC pipes are excluded from the scope of this report.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.