Industry Trends
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Unpacking the Reasons Behind the Upward Trend in International Copper Prices
2024-03-27
International copper prices continue to rise, and the surge in copper demand is having a significant impact on the global market. As one of the important raw materials for cable & wire harness, copper price trends have been closely watched. As the world's largest consumer of copper resources, China has played a decisive role in the recent rise in copper prices. In particular, the rapid development of the new energy field, such as new energy solar cable , has led to a substantial increase in copper consumption.
Since March, global copper prices have risen steadily. On March 16, the international copper price (LME copper) exceeded the US$9,000/ton mark. Even now, the international copper price still exceeds US$8,800/ton. There are many reasons for the price increase, including limited high-quality copper ore resources and challenges in increasing production at the smelting end, resulting in weak copper supply. In addition, the rise of electric vehicles and the arrival of the replacement cycle of electrical equipment have led to growing demand for copper, further driving up copper prices.
1. Copper supply
From the perspective of regional distribution, the world's copper resources are mainly distributed in North America, Latin America and Central Africa. According to the latest data from the US Geological Survey, global copper production in 2023 reached 22 million tons, with Chile producing up to 5.2 million tons, accounting for about 29% of global production; China was in fourth place, accounting for nearly 10% of production.
2. Consumption structure of refined copper in China
Copper has high ductility, toughness and electrical conductivity. It is not only an important raw material for various types of cable products, but also an important industrial metal and is in various fields such as new energy, mechanical electronics, and construction. Data from Shanghai Non-ferrous metal network show that the electric power and home appliance industries are the main consumption areas of copper, and the electric power industry alone accounts for more than 40% of refined copper consumption.
In view of the rising international copper prices and the increasing demand for copper, companies in the cable & wire harness industry are paying close attention to the situation. Shenzhen Boying Energy Co., Ltd. Is a professional supplier of AC cables , DC cables , USB data transmission and printer cables , car cigarette lighter cables and custom cable , paying special attention to the trend of copper prices. The company's products are closely tied to fluctuations in the price of copper, as it is a basic component in the production of cables and wire harnesses .
To sum up, the rise in international copper prices is driven by comprehensive factors such as limited high-quality copper ore resources, challenges in increasing production, and growing demand from new energy, electric power, home appliances and other industries. With companies such as Shenzhen Boying Energy Co., Ltd. paying close attention to these developments, the impact of rising copper prices on the cable & wire harness industry remains a focus of strategic planning and decision-making.