A problem that seems not to be mitigated

International analysts say that Latin America is living its quarter of an hour thanks to the fact that many countries produce raw materials that are quite desired in the productive environment such as copper, steel, tin, aluminum and others. On the one hand, there is a greater chance that the economy of these nations will begin to enjoy an economic boom and that this in turn will generate growth in the HVAC/R markets by the sale of such materials; but on the other hand is that on many occasions when countries begin to receive greater currencies due to this factor, it reacts as a rebound, generating falls in these prices and therefore in their income.

The situation with raw materials is leading producers to think about what to do to replace products that can become more expensive, either the manufacture of equipment or parts, as well as what could modify demand such as the costs of electricity, which would boost the purchase of more efficient units with lower electricity consumption.

Large emerging economies such as China and India are producing at historic levels, all to meet the demand for final products in the United States. The high demand of Asians is mobilizing commodities and in that sense their prices are increasing.

For Orlando Tercilla, vice president and director of Refricenter International, Latin countries were the great beneficiaries of eastern voracity, but he also considers that not in all countries this behavior led to a growth of the same market, there was a greater demand for high efficiency equipment. Additionally, they have imparted trends in the markets, such as the reduction in the demand for compressors for air conditioning of three and five tons, thanks to the reduction in the price of the finished product.

But there is another point of view regarding refrigerants. It is no secret to anyone that this will be the issue to be analyzed in 2008, as the date on which the production of R22-based equipment in us territory is approaching. For Orlando Tercilla this situation will have a great impact in terms of demand for compounds, since the fact that Europe has opted for the elimination of the use of this substance, and has replaced it with ecological refrigerants such as R-404 and R-410A, poses a global trend for the coming months that could spread to Latin America.

Although the main raw materials used for the manufacture of equipment in the HAVC/R industry, such as copper and aluminum, have continued to rise, the situation of producers and buyers in North America for this year is more worrying, due to the high costs of crude oil and its impact on the price of fuels, in addition to the production of electrical energy; this problem is reflected in a lower consumption capacity on the part of the end user and higher costs in the production of the product.

Regarding oil, for Caio Tadeo Brandao, export manager of Duro Dyne, there is some concern in the heating segment in countries with stations such as the United States, as this would impact the consumption of fuel to heat homes in winter, imposing high prices for the average American. In the same way he was concerned about the issue of freight, because at the time of exporting costs increase as a result of the rise in gasoline and what previously had a certain price today has seen increases of 40% thanks to this element.

It can then be said that 2008 will bring a strong movement to the industry. The urgency of creating new possibilities to soften the impact of oil and other materials, both in the pockets of manufacturers and end users, remains in the environment. A good alternative would be to bring to all Latin countries the economic incentive for those who acquire air conditioning equipment or refrigerators with low electricity consumption.