In June, copper wire prices rose 1% in both China and Malaysia due to tight supply and strong demand. Chinese producers cut output amid rising costs and weak construction demand, while Malaysia saw continued growth from clean energy projects despite port congestion.
The fate of copper wire across Asia hangs in the balance, caught between dwindling supplies and production woes. While China saw a small bump in prices last month, it's a deceptive gain for manufacturers battling both rising material costs and restrictive contracts. Yet, a different story unfolds in Malaysia, where copper wire prices climbed 1% thanks to insatiable demand from the booming data center and clean energy sectors, pushing past any supply chain hiccups.
China
In June, copper wire prices in China climbed by 1%. This increase reflects tightening raw material supplies and reduced operational output, as copper wire and cable manufacturers' operating rates fell to 70.18%, a 3.08 percentage point decrease from the previous month.
Copper wire and cable businesses are in a tough spot. They're locked into fixed-price contracts signed before raw material costs skyrocketed, putting them at considerable risk of losses on current orders. This has forced them to become much more conservative with production, actively lowering operating rates to prevent deeper financial pain. The impact is clear: by the end of June, the operating rate for copper wire and cable firms had dropped a significant 12.66 percentage points compared to the previous year.
The decline in finished copper wire product inventories continued in late June, reaching 20,140 mt (down 4.96% MoM) at sample enterprises. Raw material inventories, encompassing copper wire, also contracted to 16,330 mt (down 5.93% MoM). This trend reflects sustained pressure on operating rates, partially offset by robust structural orders from the new energy sector.
Looking ahead to July, the copper wire industry is expected to face a projected downturn in its operating rate. This decline stems from persistent weakness in end-use demand, an absence of new demand drivers, and the ongoing challenge of elevated copper prices deterring downstream purchases. Although the power grid and new energy sectors may offer some stability for copper wire orders, the construction sector continues to be a drag with no recovery in sight.
Malaysia
Copper wire prices in Malaysia also witnessed a rise of 1% in June. Despite encountering supply obstacles such as port congestion and disruptions, prices in Malaysia still managed to climb by in June. This upward trend highlights the strong, unwavering demand from data centers and electrical projects, which outweighed the logistical hurdles.
Supply-side pressures, particularly Malaysian port congestion and increased intra-Asia trade, pushed up copper wire prices. The Drewry’s Intra-Asia Container Index (IACI) rose 15% to $813 per 40ft container by June 30, 2025. Since mid-June, vessel waiting times at Port Klang have extended to two to three days for most carriers due to congestion.
Malaysia's accelerating clean energy transition is creating a robust market for copper wire. With the government actively promoting renewable energy through increased Net Energy Metering (NEM) quotas and enhancements to the Corporate Renewable Energy Supply Scheme (CRESS), the need for copper wire in new installations is surging. The ambitious 2 GW large-scale solar tender launched by the Energy Commission, coupled with Malaysia's substantial existing solar capacity (1.7 GW from over 82,000 systems) and nearly 600 MW more under development, presents a significant growth opportunity for suppliers.
