In September, global copper wire prices saw stability, with minor increases being seen in China and the US. The copper wire sector finds itself at a moment of transition shaped by regional differences, macroeconomic changes, and evolving demand for drivers. Buyer caution in China versus stable pricing in the U.S. amid ongoing supply disruption and currency fluctuations reflects regional price responses to immediate pressures as well as long-term demand opportunities.
Key Highlights:
In China, the price of copper wire increased by 0.3% over the month of September. Data for mid-September suggested that copper wire manufacturers were operating at approximately 66% capacity, which reflects a decrease of 1.8 percentage points month-on-month (m/m). Downstream buyers had limited reactions to price fluctuations, primarily reacting to price increases with hurried purchases and tempered buying during downtrends. By the end of September, operating rates at copper wire and cable companies declined further. Copper prices went through a short correction cycle, but the price quickly rebounded again, resulting in a nervous, waiting approach by buyers, leading to slower order placements, as there was a lack of new demand.
With the upcoming National Day holiday, copper wire demand was sluggish across key sectors, with no sign of a typical seasonal rise. The power, construction, and automotive sectors were operating at depressed levels. In terms of inventory, copper wire companies reported year- on-year rises in stockpiles, but pre-holiday inventory management was behind last year’s levels, revealing an overly cautious market.
As we look forward to early October, the current difficult market conditions are expected to further impede copper wire production. Downstream buyers remain cautious, taking a wait-and-see approach and making very few new orders. With National Day holidays beginning soon, many copper wire companies will be halting production of their goods, while the decline in operational days adds yet another limiting factor to production capacity and market momentum.
In the United States, copper wire prices remained stable with gradual upward momentum bolstered by supply disruptions and a falling dollar. There were also signs of optimism around future demand, leading to further resilience in prices. Also, on the macroeconomic side, the Federal Reserve’s commitment to cutting interest rates imported further weakness into the dollar, making copper more attractive to foreign buyers, as copper wire is traded in USD. Teck Resources also reduced its copper production forecast for 2025 on account of continuing issues with its Quebrada Blanca mine in Chile and the Highland Valley Copper operation in Canada, contributing to the unease surrounding global supply.
Copper wire demand is improving, as an increasing amount of optimism surrounds its critical role in the energy transition, as well as the growing data center infrastructure needed to support artificial intelligence systems providing additional drivers for copper wire demand. In September, battery electric vehicles represented a record 11.8% of new light-vehicle sales in the United States, buoyed partially by a last-minute rush before federal tax credits expired, demonstrating an even further relevance for copper wire in next generation mobility and technology sectors.
