By Eamonn Ryan
Local statistics on copper usage within HVAC&R are opaque, with many companies preferring to maintain confidentiality regarding their usage patterns, citing competitive advantages.
director, at a recent Metraclark customer event in Benoni, Gauteng. All images by © Cold Link Africa
Local statistics on copper usage within HVAC&R are opaque, with many companies preferring to maintain confidentiality regarding their usage patterns, citing competitive advantages.
In a recent interview with Evert Swanepoel, non-executive chairman of the Copper Development Association Africa (CDAA) on the role of copper in the HVAC&R sector, he shed light on significant shifts and challenges faced by the International Copper Association (ICA) and its impact on promoting copper worldwide.
“It’s interesting to note that while copper enjoys popularity overseas, its use in South Africa is not as widespread. Many years ago, the ICA formed a committee to guide its initiatives in promoting copper globally. However, as market conditions and operational strategies evolved, there was a reassessment of the ICA’s role.” This re-evaluation led it to streamlining operations and reducing overhead costs by 33%. Notably, this restructuring affected global promotion and marketing support of CDAs globally.
“Initially, there was substantial investment in promoting antimicrobial copper due to its potential health benefits. However, after careful evaluation, the ICA decided to discontinue active promotion, citing insufficient returns on investments and challenges in substantiating antimicrobial claims.”
Reflecting on recent developments in the South African market, Swanepoel noted significant shifts impacting copper usage. “Historically, air conditioning units predominantly featured copper components. However, over the years, there has been a noticeable transition to aluminum, driven largely by cost considerations and ease of installation. It is important to note that the use of copper in HVAC is still substantial.”
Addressing the distinction between HVAC and plumbing sectors, he highlighted evolving preferences. “Microgroove copper tubing, known for its durability and performance, is gaining traction, particularly in specialised applications in HVAC. Despite being imported, its superior service capabilities justify its adoption.”
“The potential for local production of specialised copper products hinges on market demand. Currently, Copper Tubing Africa (CTA) and Maksal dominate production volumes, with Maksal emerging as a major exporter to Asian markets.”
“Currently, much of the virgin copper is imported, primarily from countries like Zambia, the Democratic Republic of Congo (DRC), Germany, and Russia. In contrast, South Africa’s output represents a small fraction, approximately 2%, of global production. Transport costs add to the expense, making imported copper less economically favourable and severely restricting export opportunities for local manufacturing companies.”
Highlighting recent developments in local mining, Swanepoel mentioned significant projects underway. “Palabora Mining Company and Orion Minerals are notable examples,” explains Swanepoel. “Palabora is completing a new smelter after a two-year construction period, aiming to enhance local copper production capacity. Orion Minerals revived copper mining in Prieska, capitalising on favourable market conditions.”
Regarding the export of copper scrap and its impact on local manufacturing, Swanepoel says: “Local companies, despite using some recycled copper, face challenges due to the export-oriented nature of scrap processing. Efforts to restrict copper scrap exports have been ineffective, leading to concerns about the availability of high-quality copper for local manufacturing.”
Addressing the technical aspects of copper processing, Swanepoel emphasises the need for virgin copper in specific applications. “While scrap copper serves various industries like electronics and agriculture, virgin copper remains essential for critical applications requiring high standards. Local production struggles to meet these demands due to the dominance of scrap exports.”
Swanepoel sheds light on the escalating need for copper in renewable energy technologies. “Wind turbines and solar power systems significantly increase copper demand – and driving the price of copper to new highs recently, highlighting its crucial role in sustainable energy infrastructure. This global demand surge contrasts sharply with local refining constraints, exacerbating reliance on imported copper.
“Fluctuating copper prices and global market trends heavily impact local stakeholders. Efforts to refine and process copper locally face economic challenges, influencing strategic decisions among industry players.
“Copper’s superior conductivity and durability make it indispensable in electrical applications. While aluminum is lighter and cheaper, it requires thicker cables to match copper’s efficiency. New developments, like steel-reinforced cables, threaten traditional copper applications. Despite these challenges, the global demand for copper remains robust, driven by its essential role in sustainable energy infrastructure.”
Swanepoel noted several persistent issues hindering the industry’s growth, notably the governance and regulatory hurdles. “Efforts to curb illegal exports of copper scrap have been met with bureaucratic inertia,” lamented Swanepoel. “Despite numerous meetings and proposals, government action has been minimal, with little enforcement at ports and inadequate knowledge among inspectors.
“Many exporters exploit loopholes, mislabeling copper scrap as aluminum or steel to evade regulations. While occasional crackdowns occur, logistical challenges at ports often result in minimal consequences for offenders. New regulations have been proposed by the Department of Trade, Industry and Competition. The impending legislation aims to restrict the export of copper scrap, addressing industry concerns raised during consultations. This regulatory overhaul seeks to mitigate the rampant illegal export practices plaguing the sector.”
Reflecting on broader industry challenges, Swanepoel touched upon the dwindling market and shifting dynamics. “Local manufacturers, once thriving in copper-related industries, have faced closures and economic setbacks with some companies, formerly pivotal in cable production, having shuttered operations due to market contraction and global competition.”
Maksal: Leading the way in copper tubing for HVAC solutions
Metraclark recently hosted a customer event in Benoni, Gauteng, as part of a nationwide roadshow at which Dave Ronquest, Maksal sales and marketing director, highlighted the company’s longstanding commitment and achievements in manufacturing high-quality copper tubing for the refrigeration, air conditioning and plumbing industries.
Maksal, headquartered on the East Rand and with a history dating back to the 1940s, has been a cornerstone in South Africa’s copper tubing market.
The manufacturing process at Maksal begins with high-quality copper cathode plates sourced directly from mines. Initially utilising extrusion press technology, Maksal later transitioned to the more efficient cast and roll method in 2016. This upgrade not only enhanced production throughput but also significantly reduced energy consumption by eliminating large furnaces in favour of smaller, more efficient ones.
In December 2023, Maksal implemented another significant upgrade, further boosting their daily production capacity to 200km of tubing/day.
Maksal’s copper tubing for refrigeration and air conditioning applications adheres to ASTM 280-88 and 743-88 specifications, ensuring global recognition for its reliability and performance. The tubing undergoes annealing processes to ensure ease of installation.
While prioritising the local South African market, Maksal also exports a substantial portion of its production globally. Ronquest noted their competitive edge in international markets, including the Middle East, where Maksal has established itself as a trusted brand despite competition from larger manufacturers.
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