If you’re paying attention to the wire and cable industry, then you’ve probably already noticed price increases in copper, silver, and other raw materials.
We make a diligent effort at Lapp Tannehill to make sure our customers know about all the economic impacts, environmental factors, and industry trends that can potentially affect the way you do business.
Why Cost Increases for Copper, Silver, and Raw Materials are Leading to Higher Prices
Whether these price fluctuations are affecting the wire, cable, and connectivity products and materials you’re currently purchasing or they’re affecting your outlook on budget projections in procurement, finance, supply chain management, or product development – we’ve got you covered.
Let’s take a look at some of the world-wide cost pressures that are affecting manufacturers, distributors, and suppliers who are in need of wire and cable products.
Copper
After a 22% price increase in 2020, Goldman Sachs analysts say that 2021 could soon see a record high for copper prices. These price increases are due to factors such as China’s economic recovery from the pandemic, sustainable green energy stimuluses, and supply disruptions.
China’s rising industrial production along with aggressive sustainable energy initiatives accredits the country to being the highest consumer of copper in the world.
Europe, the U.S., and China all have strenuous renewable energy initiatives to sustain greener economies and a need for copper’s highly thermal and electric conductivity to help them get there.
The biggest copper producing countries such as Chile, Peru, China, and the U.S. struggle to meet the high demand for countries to meet their green economy initiatives, therefore playing a role in sky-rocketing the price of copper.
There is also speculation that as the U.S. dollar is increasingly becoming weaker against other global currencies, there are more opportunities for users of other currencies to have more buying power with copper and other commodities.
Chile, the world’s leading exporter of copper, has had a hard time keeping up with demand due to surge in miners falling ill to the coronavirus and their companies facing labor union strikes.
Stifel Financial analysts say, "Of all the metals used in the generation, transmission, storage, and consumption, copper remains the common denominator. Electricity generation, transmission infrastructure, energy storage, and consumption all require copper."
According to the European Copper Institute, world-wide copper consumption is predicted to rise more than 40% by 2035.
Jinhua Huacheng Medical Appliance Co.,Ltd.
Manufactuer of disposable medical products: Electrosurgical pencil,grounding plate,skin stapler and ECG electrode
