For the Quarter Ending March 2024
North America
The initial quarter of 2024 posed significant challenges for the North American copper wire market, characterized by a continuous decline in prices. Several elements played a role in this downward trajectory. To begin with, there was an excess supply of copper wire, resulting in an abundance of available stocks.
Furthermore, the robustness of the US dollar exerted pressure on pricing, driving it downward. Market uncertainties, including the pending approval of a land exchange for Rio's Arizona copper mine, fostered a sense of negativity among buyers, prompting them to approach the market cautiously and make minimal purchase commitments. There was low demand observed within the domestic market of US.
Nevertheless, global supply chain uncertainties, compounded by disruptions such as the closure of the Cobre Panama project, contributed to market instability. The pricing landscape for copper wire in North America remained consistently unfavourable, witnessing price decreases throughout the quarter. Factors such as oversupply, currency strength, and market unpredictability have significantly influenced the market dynamics.
APAC
In Q1 2024, the pricing environment for Copper Wire in the APAC region was influenced by various factors, resulting in significant fluctuations in market prices. Overall, the market experienced a mix of positive, negative, and stable trends during this quarter. Demand from downstream industries also had a significant impact on market prices. While some sectors experienced low demand, such as the housing sector in Vietnam and China, others saw a surge in demand. The automotive and construction sectors in South Korea, for example, witnessed increased consumption and contributed to a rise in prices. Seasonality and correlation with other factors also influenced the price changes. The first half of the quarter saw a slight decline in prices, followed by an upward trend in the second half. This can be attributed to factors such as reduced supply, positive market sentiment, and government stimulus measures. In South Korea specifically, the market experienced the maximum price changes compared to other countries in the APAC region. The South Korean copper market faced disruptions due to a surge in copper scrap exports to China, leading to rising prices. The government's taxation policies and reluctance to address the issue added to the challenges faced by the industry. To conclude, the pricing environment for Copper Wire in the APAC region during Q1 2024 was influenced by supply and demand dynamics, seasonality, and correlation with other factors. While some markets experienced price declines, others saw an increase.
Europe
The pricing of Copper Wire in Europe exhibited a positive trajectory in first quarter of 2024. Multiple variables impacted the market rates, such as heightened demand across diverse sectors and governmental efforts to lessen reliance on external suppliers. In Germany, where fluctuations in Copper Wire prices occurred, there was a consistent pattern throughout the quarter. The German market’s price hike was influenced by factors like a flourishing export sector, increased new vehicle registrations, and government investments in raw materials. These elements collectively contributed to maintaining a slight upward trend. High demand observed from downstream sector like automobile and infrastructure sector. Market participants were keenly observing global metal price dynamics, especially considering geopolitical shifts and disruptions in supply chain. This reflects an overall optimistic outlook regarding Copper Rod pricing in Germany for the first quarter of 2024. In summary, the European Copper Wire market, particularly in Germany, enjoyed a favourable pricing atmosphere during the initial quarter of 2024.
For the Quarter Ending December 2023
North America
The final quarter of 2023 witnessed notable dynamics in the North American Copper Wire market, characterized by strategic shifts and intrinsic market influencers. Market conditions were shaped by adaptability to supply chain dynamics, regulatory nuances, and fluctuations in raw material costs. This intricate dance of factors defined the quarter's Copper Wire landscape within the North American region. In the absence of any reported plant shutdowns, market conditions were marked by a steady demand, showcasing minimal deviations.
The selected country, the USA, experienced distinctive pricing adjustments, reflecting its pivotal role in regional market shifts. Correlation analyses uncovered the subtle interplay between trends, seasonality, and pricing, underscoring the market's inherent adaptability. The calculated percentage change from the current to the previous quarter and the price percentage comparison of the first and second halves of the quarter in the USA exhibited a nuanced market response.
Copper Wire (0.2 inch) CFR San Diego in the USA concluded the quarter at a representative price, encapsulating the region's resilience in navigating market intricacies. This comprehensive analysis illuminates the multifaceted dynamics that defined the North American Copper Wire market in the final quarter of 2023. In Dec, the price trend of Copper Wire in the USA stabilized at USD 7543/MT CFR San Diego.
APAC
The final quarter of 2023 witnessed a dynamic scenario for Copper Wire in the APAC region, marked by distinct factors that shaped market dynamics. Market conditions were influenced by strategic shifts in supply chains, stringent regulatory changes, and fluctuations in raw material costs. The intricate dance of these elements underscored the nuanced equilibrium of the Copper Wire market. South Korea emerged as a pivotal player, experiencing notable pricing adjustments. The calculated percentage change from the current to the previous quarter reflected the region's adaptability to evolving market dynamics, with a discernible -0.2% shift. Correlation analyses unveiled a lacklustre interplay between trends, seasonality, and pricing, elucidating the market's inherent resilience. The first and second halves of the quarter showcased minimal deviations, maintaining market steadiness. Copper Wire (0.2 inch) FOB Busan in South Korea concluded the quarter at an indicative price, symbolizing the region's adaptability to market nuances. Top reasons for market shifts included strategic supply chain adaptability, regulatory considerations, and raw material cost fluctuations. This comprehensive analysis encapsulates the intricate dynamics defining the APAC Copper Wire market during the final quarter of 2023.
Europe
In the fourth quarter of 2023, the Copper Wire market in Europe experienced a challenging period, primarily influenced by reduced demand from downstream industries and an oversupply situation. In October 2023, Copper Wire prices in the German spot market showed stability amidst firm demand from the automotive and infrastructural development sectors. Production rate showed a firm rising trend initially, as the mills were performing at a higher rate. In the latter half of the last quarter, Copper Wire prices declined due to reduced demand amid oversupply, influenced by competitive global feedstock provision. The trade disruption through the Panama Canal due to draught, and the Red Sea affected by the Houthi rebel group’s attacks, kept the domestic inventories at an oversupply of Copper Wire, as the export rate declined. Furthermore, the downstream electric vehicle sector showed a plunging market trend as the German government, removed subsidy from the EV sales in December. As a result of the above-mentioned factors, the European market showed an overall declining price trend for Copper Wire in the last quarter of 2023.
For the Quarter Ending September 2023
North America
Copper Wire prices in the US spot market have surged due to a stronger economy and robust domestic and international demand. Depleting raw material stocks exerts upward pressure on prices, and rising crude copper prices, fueled by foreign mines in Australia and Indonesia, further boost rates. Increased energy costs for production support Copper Wire prices and a growing demand at the production chain's upstream end limits supply, especially with the expanding electric vehicle sector in the automotive industry. On the other hand, Copper Plate prices in the Japanese spot market remain stable, with growing raw material stocks and consistent demand from both domestic and foreign markets. Copper's price as a raw material has declined in the US due to increased foreign mine production. Weak economic conditions and competition from China's electric vehicle market have impacted Copper Plate prices. The US Federal Reserve's interest rate hike has reduced orders from both domestic and foreign buyers. In the Chinese spot market, falling copper prices are attributed to increased supply and decreased demand due to weak economic conditions in the US and the Eurozone. Globally, rising interest rates and reduced demand in the automotive and construction industries are also contributing to lower copper sheet prices.
APAC
The Chinese Copper Wire market encountered a stable price trend in the third quarter of 2023. In July, pricing stagnated due to an influx of imported copper, driven by macroeconomic variables. Weakening US non-farm payrolls and interest rate uncertainties affected copper prices, benefiting China due to its growing electric vehicle usage. However, global economic growth remained weak, and local services-led recovery showed little interest in copper. In August, demand for copper Wires diminished, especially in consumer goods and construction, due to domestic policy downturns, slower import-export growth, and a decline in real estate. Rising foreign interest rates and decreased auto industry demand further lowered copper prices. September witnessed price stability as a balanced supply-demand outlook, positive macroeconomic signals, and domestic demand-stimulating policies countered overseas uncertainty. However, market sentiment wavered in late September as operating rates rose, affecting copper Wire makers using scrap copper. The Chinese Copper Wire market experienced summer fluctuations driven by global economic factors, domestic policies, and supply-demand dynamics.
Europe
Copper Wire prices in the US spot market have surged due to a stronger economy and robust domestic and international demand. Depleting raw material stocks exerts upward pressure on prices, and rising crude copper prices, fueled by foreign mines in Australia and Indonesia, further boost rates. Increased energy costs for production support Copper Wire prices and a growing demand at the production chain's upstream end limits supply, especially with the expanding electric vehicle sector in the automotive industry. On the other hand, Copper Plate prices in the Japanese spot market remain stable, with growing raw material stocks and consistent demand from both domestic and foreign markets. Copper's price as a raw material has declined in the US due to increased foreign mine production. Weak economic conditions and competition from China's electric vehicle market have impacted Copper Plate prices. The US Federal Reserve's interest rate hike has reduced orders from both domestic and foreign buyers. In the Chinese spot market, falling copper prices are attributed to increased supply and decreased demand due to weak economic conditions in the US and the Eurozone. Globally, rising interest rates and reduced demand in the automotive and construction industries are also contributing to lower copper sheet prices.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the US Copper Wire showed a stagnant price trend amid macroeconomic factors playing a major role in its stability. In the initial phase of Q2, the price rise was observed as there was an unexpected decline in the Producer Price Index in the USA which lifted some downward pressure from copper Wire manufacturing. The supply-demand rate was stable, indicating that the US government was in the end phase of an interest rate hike and would decline it in the upcoming weeks. Meanwhile, the market condition in H2 of the second quarter drastically declined, which withdrew the price hike from the first half of the quarter. In the latter half, the US government faced a depriving economic condition in the second quarter as the downfall of several major banks across the USA created a debt crisis in the US spot msarket. The buyers then remained on a wait-and-watch basis, and the purchasing rate was centered over need on a demand basis. The downstream infrastructural development, along with the decarburization effect for the electrification of various mills, kept the consumption rate stable across the German spot market.
Asia- Pacific
The Asian market showed an increasing price trend for Copper Wire in the second quarter as the Chinese copper market experienced an optimistic market sentiment. In China, the copper smelting mills were performing at a firm rate amid a stable domestic consumption rate. Furthermore, the various government deals and policies along with the rise in production cost in the Chinese spot market, provided strong cost support to produce Copper Wire. The inventory level was maintained at a bit lower edge as the manufacturing activity didn’t hike as much as the demand surged. The supply disruption across a few domestic warehouses gave a chance to stabilize the mills and return them to full capacity. The supply of Copper scrap remained stable, which helped in the northward momentum of copper prices. The uncertain economic condition somewhat dampened the price of Copper Wire as the overseas US and countries inside Eurozone have banned the import of Chinese-origin commodities, including copper Wire, which led to an increase in local Chinese inventory levels. The slight decline was observed amid increased import rates as the cargo shipment were more attracted due to the import subsidy policies provided by the Chinese spot government. The oversupply in China provoked the local mils to sell Copper Wire in surplus amounts at a cheaper rate to maintain the supply-demand gap. Meanwhile, the buyers were shying away from placing large orders as the market sentiment got bearish, and there was only on-demand purchase across the Chinese spot market.
Europe
The price of Copper Wire remained stable in the second quarter in the German spot market as the macroeconomic factors played a major role in its stability. The copper wire supply remained stable as the copper smelting mills were performing at a firm rate. The demand for Copper Wire was steady from the buyers’ side as the buyers remained in a wait-and-watch situation, and the purchase was on a demand basis. The weakening of the US dollar provided a strong fundamental for the price of Copper Wire and was presumed to be the last phase for a reduction in interest hikes across Germany. Meanwhile, the decarburization and electrification of various copper smelting mills kept the consumption rate high and promoted stability in copper Wire prices. The purchasing ability of consumers decreased, which led to a surge in the local inventory level for Copper Wires. This provoked the German government to impose countervailing duties over the import of cheaper copper products from overseas Chinese and Asian markets. The domestic consumption rate was on a lower edge as the economic condition worsened in the H2 of Q2. The German economy went into recession amid a consistent increase in the inflation rate. The trade conditions dampened as the economy declined in the local as well as overseas markets. The downstream automotive industry showed a plunging market trend as electric vehicle sales declined, leading to an oversupply of Copper Wire. The German government is planning to sign various deals to uplift the consumption rate of Copper Wires along with uplifting the economic condition of the country.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, Copper Wire prices in the US rose due to the banking meltdown's effect on inflation and interest rates. Market players observed that lower copper prices resulted in increased demand before traditionally high-demand periods, such as April and May. As the market searched for indications of a solid post-pandemic recovery, a reduction in inventory build-up suggested a rise in demand. Manufacturers' input purchasing had decreased, resulting in shorter lead times and fewer logistical delays. Firms opted to deplete inventories, causing stocks of purchased and finished goods to decrease. The Silicon Valley Bank's failure in mid-March had a small effect. In March, lower prices and more competitive payment terms drove the first-half recovery of orders, but new orders sharply declined in the second half, with concerns of a further drop in April. Spot premiums declined before bouncing back due to cash flow issues and market player tactics. The loss from copper imports increased, reducing the inflow of imported copper and the supply of copper plates in the global market. As a ripple effect, the Copper Wire (0.2 inches) prices for CFR San Diego (USA) settled at USD 7428/MT.
Asia Pacific
In the first quarter of 2023, the Chinese Copper Wire market experienced an upswing in prices due to increased downstream inquiries from the power transmission and distribution sector. However, many downstream small and medium-sized cable firms began shutting preparations before the Spring Festival break, resulting in a decrease in demand for copper and a slowdown in production pace for copper Wire enterprises. Production and downstream firms progressively recovered in mid-Q1, but refined copper consumption remained low, and spot prices remained discounted. Terminal consumption and orders also recovered slowly. By March, the Copper Wire market was destocking, and demand was beginning to rebound, albeit it was unclear whether the terminal order situation would remain favorable. Copper concentrate delivery and transportation were enhanced, new refined copper production capacity was put into operation, and raw materials were loosened to improve supply.
Europe
In Q1 2023, the European copper wire market experienced a rise in prices due to increased demand for refined copper and low inventory levels across all three exchanges. The surge in raw material prices caused by banking instability further compounded this issue. Despite these factors, some buyers avoided Russian copper due to significant inventories in futures warehouses. Additionally, the spot market was impacted by Europe's constrained supply, uncertainty in demand, and record-high annual contract prices. Market participants noted that a banking meltdown in global markets caused by the failures of Silicon Valley Bank and Credit Suisse impacted copper prices, resulting in price volatility due to reduced stocks. This caused issues for traders, producers, and consumers alike. Although there was a recent jump in orders, it was mainly due to a significant drop in copper prices rather than an increase in genuine end-user demand. Buyers reported falling inventories compared to 2022. During the previous week, there were limited new orders, and as copper prices recovered towards the end of the week, the drop in downstream orders became more apparent.
For the Quarter Ending December 2022
North America
In the final quarter of 2022, Copper Wire prices showcased a rising trend in the North American market owing to the rising interest rates and inflationary pressure. Copper prices fluctuated due to fears of a global recession as inflation in North America reached double digits in Q4. In October, the supply outlook remained bleak, as lower prices were insufficient to stimulate new manufacturing investment. Copper prices rose in the middle of the fourth quarter as investors proclaimed that central banks would slow the pace of interest rate hikes. Smelter transactions, on the other hand, increased in December as a result of replenishment requirements following supply issues, as well as slow discussions of annual term contracts, which increased demand for spot cargoes. The copper wire market remained uncertain amid global conflicts and the US midterm elections in the absence of any changes in the base metals that indicated a continuation of sideways movement. According to buyers, the physical trade has been extremely quiet and will remain so until the end of the year.
Asia Pacific
Copper Wire prices surged in the Chinese market in the fourth quarter of 2022 despite easing macroeconomic pressures, with solid support from both the supply and demand sides. In October, China's supply of copper concentrate was becoming increasingly scarce, and downstream enterprises were still concerned about high prices and weak terminal procurement, limiting the rise in copper prices even further. Consumers were becoming reluctant to support rising prices, and the supply-demand gap widened in the fourth quarter. The market's inventory remained low, driving up prices. Furthermore, the LME refused to impose delivery restrictions on Russian metal, lowering the risk of a market-position squeeze. Following the relaxation of China's pandemic control measures at the end of the fourth quarter, market participants became increasingly concerned about the demand outlook.
Europe
In the German market, the Copper Wire prices showcased an upward price trend in the fourth quarter of 2022 due to a combination of factors such as US dollar movement, China's zero-covid policies, persistent supply-side issues, and an uncertain macroeconomic outlook amid rising inflation and interest rates. Despite production issues in the middle of the fourth quarter, the threatened supply situation was not reflected in copper wire prices. As lower prices did not stimulate enough new production, the supply outlook remained bleak. Copper Wire prices were expected to be volatile if Western nations or the London Metal Exchange imposed restrictions on Russian-produced metal. The LME, on the other hand, did not impose a ban on Russian-origin products. Furthermore, global copper stocks fell to record lows, with current inventories only sufficient to meet global demand for a few days and shortage risks that did not reflect the tightness of the physical market.
For The Quarter Ending September 2022
North America
Copper Wire prices witnessed an unprecedented surge in the third quarter of 2022 as the inquiries were stronger than expected from the end-users in the US market. According to market participants, the US rate hike could boost the dollar, but it retreated, making dollar-denominated metals cheaper for holders of other currencies, potentially increasing demand. Copper stocks in LME registered warehouses also supported prices and had canceled warrants (metal earmarked for delivery), which have been at 28% versus 18% at the start of August. Copper Wire prices rose due to the ripple effect of limited availability of raw material Copper Ingot in the face of falling dollar rates and recessionary fears.
Asia Pacific
During the third quarter of 2022, Copper Wire's price trends were falling due to the limited demand outlook. Even though the primary processing market had improved, manufacturers reported that end-user demand had not recovered. Buyers' claims to supply and demand were low due to the "loan suspension" and private real estate companies financing issues. Domestic and overseas orders in the home appliance sector were down, making performance difficult. The main copper-manufacturing areas were also disrupted, and output from overseas mines fell. Since August, refined domestic copper, high temperatures in many parts of the country, and growing concerns about sulfuric acid storage expansion have hampered electrolytic copper production. Domestic copper inventory remained high, and domestic mine supply remained limited.
Europe
In the European market, Copper Wire prices witnessed a rising trend amidst skyrocketing energy costs. As per market players, gliding energy costs had caused temporary smelter shutdowns in European regions and supported the rise in base metal prices. The increase in interest rates in advanced economies also weighed on commodity prices. However, given the low inventory levels in central warehouses, market participants expected that base metal prices were unlikely to fall any further in the near term. However, lower prices have been putting pressure on the margins of domestic base metal producers, and end-user industries have been the key beneficiaries. Because of the current year's price decline, base metal producers' margins have been squeezed. Furthermore, because of the rising coal price, players faced cost pressures when they purchased coal from the market.
For the Quarter Ending June 2022
South America
Copper Wire prices in Chile fell during the second quarter of 2022. According to market participants, supply concerns have been exacerbated by dwindling Chilean production and conflict with local communities near copper mines in Peru. Droughts in Chile's Antofagasta and Atacama regions have forced manufacturers to rely on seawater and desalination plants. Furthermore, Chilean state-owned copper mining company Codelco announced the closure of its Ventanas smelter, which had been closed for maintenance and operational adjustments following a recent environmental incident that sickened dozens in the region. The Peruvian copper mine Las Bambas has been closed for the first two months of the second quarter of 2022, resulting in the layoff of approximately 3,000 miners. The suspension has disrupted Minerals and Metals Group's (MMG) supply of Copper raw materials and caused delays in delivering long-term Copper concentrate orders.
Asia Pacific
Copper Wire prices in China fell during the second quarter of 2022, owing to waning sentiments. Because of the ongoing domestic epidemic in April, market demand was low, logistics transportation was disrupted in many places, and downstream processing firms' operating rates were significantly lower. Investors were concerned about global stagflation in May, as US stocks fell and the US dollar index rose. Furthermore, the current domestic epidemic is weighing on copper consumption, and market sentiment is negative. However, the manufacturers witnessed multiple spot transactions of copper ores between smelters and mines with traded treatment charges in June. Certain smelters had a specific demand for spot clean Copper ore in Q3 2022, but the market was still short of pure Copper ore. Few Chinese and Japanese smelters are in the process of negotiating long-term orders for the middle of the year.
Europe
During Q2 2022, Copper Wire prices fell in the European market due to low demand and limited regional transactions, despite inflationary pressures and supply bottlenecks. According to market participants, rising US inflationary pressures have bolstered the case for the Federal Reserve's aggressive stimulus to rein in price coercion, raising fears of a recession. The administrators are becoming more hawkish, rattling risk assets across markets. Traders claim that recession fears are weighing on Copper Wire prices. Inflation and supply are still tight in the mid-second quarter. However, copper prices are falling as concerns about a slowdown in industrial movement across major economies coincide with a drop in Chinese demand. At the same time, the European Central Bank raised its inflation forecast at its June meeting and announced plans to begin a gradual and sustained rate hike.
For the Quarter Ending March 2022
South America
In South America, the Copper wire prices showcased an increasing trend in Q1 2022 owing to the soaring prices of raw material Copper. Because of the rising price of Copper as raw material, Copper wire costs in South America witnessed an increasing trend in Q1 2022. The supply disruption caused by the dispute between Russia and Ukraine drives this price increase. During the conflict, supply concerns resurfaced when operations at Southern Copper's Cuajone mine in Peru were interrupted due to the residents blocking water and other critical supplies. According to local authorities, more than 18 percent of Peru's Copper production is reportedly disrupted. Various mines, notably the Cuajone Copper mine, Glencore's Antapaccay Copper mine, and MMR's Las Bambas Copper mine, have been impeded by Peruvian miners. Local miners believe they haven't benefited from the rising inflation in Copper prices.
Asia Pacific
In India, the Copper wire prices showcased an increasing trend in March owing to the soaring prices of raw material Copper. This surging in prices is primarily backed by the stretched supply chain provoked by the geopolitical uncertainties between Russia and Ukraine. Additionally, the sanctions imposed by the western nations on Russia have two-folded the impact on the global supply chain of Copper, as Russia is a significant producer of Copper. Additionally, India imports Copper primarily from Peru and Chile. However, the Peruvian miners have hampered the mining activities of various mines. Local miners assert that they haven't received a payoff from the increasing prices of Copper. Market players expect the Copper wire prices to come under pressure as the supply growth outstrips demand as output from new projects hits the market.
Europe
In Europe, Copper Wire prices witnessed a soaring trend during the first quarter of 2022 due to the rising geopolitical uncertainties and increasing costs of raw materials. This ascending trend is also backed by the supply chain disruptions caused by the Russia-Ukraine war. However, the high prices of Crude oil, coal, and power in the regional market further heightened the inflationary pressure amid rising raw material prices forcing the market player to embark more aggressively. During the conflict, robust demand for Copper amidst the lower inventory levels further provoked the supply concerns to resurface. Moreover, the sanction imposed by Australia on Russia came into force with increased supply putting additional pressure on the market and the already stretched supply chain.
