Well, welcome to 2016, which at least so far has provided more than its fair share of winter weather across the nation. Isn’t it nice, though, that in 2016 we live in a world with such high-quality cable and wire that we can all stay warm and connected as we huddle in front of the fireplace with a cup of hot coco…
As mentioned previously, we’re pretty excited about 2016 and what it will bring– as a spoiler for next month, we can tell you that we have an interesting magazine feature coming up. But that’s next month. This month we want to share our pick of what we think is the most interesting recent industry-related news item. As always, if you have any thoughts or comments, please feel free to share them with us!
Copper Price Hits Record Low
The price of copper obviously has a significant effect on the wire industry, and the recent trends regarding that have been very interesting. After the seventh losing session within the last nine sessions, the price of copper has reached a record low – again. We say again because the combination of continuously high levels of copper production with decreasing demand for it have made the last few years a competition for how low the price of copper can go. Behind this are the financial problems of the manufacturers in China whose copper usage amounts to about 45% of the global usage.
For one thing, this trend doesn’t seem to be changing. Most experts are saying that at least for the next few years the demand for copper is not likely to increase as China continues to come to grips with its economic upsets. The only way the price will be jacked up again is if the production of copper is significantly decreased, and at least at the moment that doesn’t seem to be in the cards. So if you’re in the industry, this is definitely something to keep an eye on. If the prices of copper continue to hit record lows for another few years, it can start having a noticeable effect on a lot of industries as well as wire and cable distributors.