Copper Shortages May Impact Prospects of Cabling Industry

Copper is a good conductor of electricity and is cheaper in comparison to other electrical materials. The metal also has a range of applications, having been used in a wide variety of applications, from cabling and car parts to consumer electronics.

Figures show that since 1900, about 95% of all the copper that has ever been mined and smelted has been extracted. Given that copper is a finite resource, the metal’s supply is expected to decline as its demand and applications increase in the long term.

Currently, the demand for the red metal is growing, with the latest data showing that annually, demand increases by 575,000 tons.

The price of the metal is greatly influenced by the global economy’s health. This means that increasing prices may cause issues for the metal’s supply chain. It is expected that as the price of crude oil increases over time, the price of everything else — from the cost of extraction to the delivery of raw materials to manufacturers — will also increase.

This means that any product that uses copper, such as cables, will be sold at a higher price, with distributors paying a higher figure for the final product in addition to higher costs of shipping. The added costs will then be passed on to consumers, electrical firms, contractors and others who need these copper products to finish up their projects.

China is said to be the biggest consumer of copper, in addition to being the leading manufacturer of electronics globally.

It is expected that as more focus is put on transitioning from the use of fossil fuels to clean energies, the need and demand for copper will likely increase. The increasing use of the metal in the emerging markets will place considerable strain on the supply chain. Eventually, the cable business, and particularly the copper cable business, will be affected by the price and supply of copper directly. The higher the price of copper, the higher the amount a consumer will be expected to pay.

In addition, higher prices will make it harder for new projects to commence, particularly projects focused on renewable energy. Copper’s role in the green revolution is essential because it contributes to sustainable development and global green transition goals. The metal is being used in electric vehicles, charging infrastructure, photovoltaics and grids, among many other applications.

The red metal’s use is primarily based on it being fully recyclable; this allows any components manufactured using copper to also be recycled in other areas. As the demand for copper begins to outstrip its supply, the stocks of extraction companies such as Freeport-McMoRan Inc. (NYSE: FCX) are likely to soar as investors seek to cash in on the surging demand for the red metal.

About MiningNewsWire 

MiningNewsWire (MNW) is a specialized communications platform focused on developments and opportunities in the global resources sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to millions of social media followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled visibility, recognition and brand awareness. MNW is where news, content and information converge.

To receive SMS text alerts from MiningNewsWire, text “BigHole” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.miningnewswire.com

Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.miningnewswire.com/Disclaimer

MiningNewsWire
Los Angeles, California
www.miningnewswire.com
310.299.1717 Office
Editor@MiningNewsWire.com

MiningNewsWire is part of the InvestorBrandNetwork.