2025 Analysis of International Copper Price Fluctuations' Impact on Global Wire & Cable Industry: Transmission Mechanisms and Price Trends

AnalysecirPsis Report on the Impact of International Copper Price Fluctuations on Global Wire and Cable Prices

Executive Summary

From August to October 2025, international copper prices showed a strong upward trend. LME copper price surged from $9,535/ton at the beginning of August to $10,947/ton at the end of October, with a cumulative increase of 14.8%, hitting a 15-month high. COMEX copper price broke through the $5/pound mark from $4.5/pound during the same period, with an increase of over 11%. The sharp fluctuations in copper prices have had a profound impact on the global wire and cable industry. Since copper accounts for 60%-85% of the production cost of wire and cable, for every 10% increase in copper prices, wire and cable prices need to be adjusted by 70%-100%.

The current round of copper price increase is mainly driven by three factors: multiple shocks on the supply side have led to tight global copper supply, including the shutdown of Indonesia's Grasberg copper mine due to 800,000 tons of mud inflow and the decline in copper ore grade in Chile; the explosive growth of the new energy industry on the demand side, with annual growth rates of photovoltaic and wind power installed capacity exceeding 20%, and copper usage in new energy vehicles is 5 times that of traditional vehicles; at the macro level, the Federal Reserve started an interest rate cut cycle in September, the US dollar weakened, and the reshaping of trade patterns triggered by the US imposing a 50% tariff on semi-finished copper products.

The impact on downstream industries shows significant differentiation characteristics: the power industry, as the largest demand side (accounting for 52.3%), has strong demand against the background of accelerated UHV construction, with State Grid investment exceeding 650 billion yuan in 2025; the construction industry demand is relatively stable but its proportion has dropped to 16.1%, which is greatly affected by the adjustment of the real estate market; the new energy industry has become the fastest-growing field, with demand for wind power and photovoltaic supporting cables growing at a rate of over 12%, and demand for new energy vehicle charging pile cables growing at a rate of over 25%.

Based on the analysis of copper price trends and supply-demand dynamics, it is expected that wire and cable prices will maintain an upward trend in the next 6 months, with an estimated annual increase of 5%-8% in 2025, among which the increase in new energy cables may exceed 10%. It is recommended that wire and cable enterprises strengthen hedging, adopt a "futures + spot" combined procurement model, establish a dynamic pricing mechanism, and optimize inventory management to cope with the risk of copper price fluctuations.

1. Analysis of International Copper Price Fluctuation Characteristics (August-October 2025)1.1 Review of Copper Price Trend and Key Turning PointsFrom August to October 2025, international copper prices experienced a strong upward trend, hitting a new high in 15 months. According to official data from the London Metal Exchange (LME), LME copper prices maintained a high consolidation trend in August, with the monthly low reaching $9,535/ton (August 1st) and the monthly high hitting $9,805/ton (August 29th), with an average monthly price of $9,645.85/ton. Entering September, copper prices began to break through the consolidation range, with the average monthly price reaching $9,952.73/ton, a month-on-month increase of 3.2%. In October, copper prices continued to rise rapidly, with the average monthly price surging to $10,686.68/ton, a month-on-month increase of 7.4%. Among them, the closing price of LME copper reached $10,947/ton on October 24th, setting a recent new high.

The trend of COMEX copper price was basically synchronized with LME, but the increase was more significant. COMEX copper futures showed an oscillating upward trend in August, with the most actively traded December copper closing at $4.4955/pound on August 27th, the lowest price of the month. In September, COMEX copper prices rose acceleratedly, with the average monthly price reaching $4.6076/pound, a month-on-month increase of about 2.4%. In October, COMEX copper prices broke through the $5/pound mark, first breaking through $5/pound on October 3rd, further rising to $5.11/pound on October 9th, and hitting an intraday high of $5.247/pound on October 28th, equivalent to $11,568/ton.

From the perspective of key turning points, September became an important watershed for copper price trends. At the beginning of September, driven by expectations of Federal Reserve rate cuts, LME copper prices fluctuated strongly, closing at $9,907/ton on September 8th. In mid-September, a major accident occurred at Indonesia's Grasberg copper mine, with 800,000 tons of mud flowing into the mine, resulting in the shutdown of the world's second largest copper mine. It is expected to reduce copper production by 591,000 tons, which became a key catalyst for copper prices to break through $10,000/ton. In October, under the expectation of the US imposing a 50% tariff on semi-finished copper products, traders began to import large amounts of copper, leading to a significant price difference between COMEX and LME copper prices, with COMEX copper prices once premium to LME by $683/ton.

1.2 Copper Price Fluctuation Range and Historical Comparison

During August-October 2025, the fluctuation range of international copper prices reached a relatively high level in recent years. From the perspective of monthly环比 increase, LME copper prices increased moderately by about 1.2% in August; the increase expanded to 2.8% in September; and further accelerated to 7.4% in October. The cumulative increase in three months reached 10.8%, among which LME copper prices rose from $9,535/ton at the beginning of August to about $10,900/ton at the end of October, with a cumulative increase of over 14%.

Compared with the same period in history, the increase in copper prices from August to October 2025 was significantly higher than the normal level. According to historical data, during August-October 2024, LME copper prices basically fluctuated in the range of $8,500-$9,000/ton, with a cumulative increase of only 2-3% in three months. While the increase in the same period of 2025 reached 10.8%, which was 3-4 times that of the same period in 2024. From the perspective of absolute price level, LME copper prices broke through the $10,000/ton mark in October 2025, setting a new high since May 2024, an increase of about 17% compared with the price level in October 2024.

From the perspective of volatility indicators, the average daily volatility of copper prices reached 1.2% from August to October 2025, higher than 0.8% in the same period of 2024. Especially in October, affected by policy uncertainty on tariffs, the intraday fluctuation range of copper prices often exceeded 2%, and the single-day increase of COMEX copper prices even reached 5.04% on October 13th. This high volatility reflects the market's high sensitivity to supply-demand imbalance and policy changes.

1.3 Analysis of Driving Factors for Copper Price Fluctuations

The strong rise in copper prices from August to October 2025 was the result of multiple factors, which can be mainly summarized into three aspects: supply-side shocks, demand-side growth and macro-policy influences.

Multiple shocks on the supply side exacerbated tight supply. Copper supply in 2025 faced unprecedented challenges, becoming the core driving force for rising copper prices. The most serious supply shock came from Indonesia's Grasberg copper mine, which had a major accident in September, with 800,000 tons of mud flowing into the mine, resulting in a complete interruption of production. Grasberg is the world's second largest copper mine, and it is expected that this accident will reduce copper production by 591,000 tons between the fourth quarter of 2025 and December 2026.

Chile, as the world's largest copper producer, also saw its production decline, exacerbating tight supply. In August 2025, Chile's copper production fell by nearly 10% year-on-year, the largest decline since 2023, mainly due to the earthquake at the end of July forcing Codelco to suspend mining and smelting operations at El Teniente mine. In addition, the average grade of Chile's copper mines has dropped from 1.2% in 2010 to 0.8% in 2025, resulting in a significant increase in mining costs, further restricting production growth.

Production disruptions at other important copper mines cannot be ignored. Kamoa-Kakula copper mine in the Democratic Republic of the Congo reduced production by about 300,000 tons due to summer floods; Teck Resources of Canada lowered production guidance for multiple operating projects, with a total reduction of about 60,000 tons; Codelco's El Teniente copper mine reduced production by 33,000 tons due to the accident; the Panamanian government ordered the closure of First Quantum's Cobre Panama copper mine, resulting in a loss of more than 300,000 tons of production. The chain reaction of these supply disruptions made 2025 the weakest year for supply growth since 2011.

Explosive growth of new energy industry becomes the strongest driver for copper demand growth, with demand for copper in wind power, photovoltaic, new energy vehicles and other fields showing explosive growth. According to industry data, the copper consumption per unit installed capacity of wind power and photovoltaic is 2-5 times that of traditional energy power generation. The compound annual growth rate of copper consumption in the photovoltaic field is expected to be 14.81% from 2023 to 2026, and that in the wind power field is expected to be 15.46% from 2023 to 2030.

The rapid popularization of new energy vehicles has brought huge incremental copper demand. The average copper consumption of traditional fuel vehicles is about 20 kg, while new energy vehicles, due to the complexity of battery, motor and electronic control systems, have a copper consumption of 40-60 kg, 2-3 times that of traditional vehicles. Global new energy vehicle sales are expected to exceed 40 million in 2025, which alone will drive copper demand of more than 1 million tons.

Electric power infrastructure construction also maintained strong growth. State Grid investment exceeded 650 billion yuan for the first time in 2025, planning to build 10 UHV lines with a total length of over 50,000 kilometers and an investment scale of over 300 billion yuan. The demand for high-voltage cables (220kV and above) increased by 35% annually, and the market scale of extra-high voltage (500kV) and UHV (±800kV) cables is expected to exceed 80 billion yuan.

Macro-policies and financial factors added fuel to the fire. The shift in Federal Reserve monetary policy provided important financial support for the rise in copper prices. In September 2025, the Federal Reserve started a rate cut cycle, cutting interest rates by 25 basis points, and the US dollar index fell from 105 to around 100. The weakening of the US dollar made copper priced in US dollars more attractive to foreign buyers, and the traditional "negative correlation between copper and the US dollar" regained strength.

Changes in US trade policies also had a profound impact on copper prices. The Trump administration's policy of imposing a 50% tariff on semi-finished copper products triggered a reshaping of the global copper trade pattern, leading to a "westward movement" of copper inventories, with large amounts of copper flowing from Asia and Europe to the United States. This change in trade flow caused a significant price difference between COMEX and LME copper prices, with COMEX copper prices once premium to LME by $683/ton. Traders' rush to import before the implementation of US tariffs further pushed up copper prices, with COMEX copper prices breaking through $5.2/pound in October, a record high.

Geopolitical factors and risk aversion also supported copper prices. The global "resource geopolitical war" is intensifying the nervous of the copper supply chain, and countries are strengthening the control and competition for key mineral resources. At the same time, against the background of increasing global economic uncertainty, copper, as an important industrial metal and hedging asset, has strengthened its financial attributes, attracting a large inflow of speculative funds.

1. Transmission Mechanism from Copper Prices to Wire and Cable Prices2.1 Proportion of Copper in Wire and Cable Cost StructureAs the core raw material of wire and cable, copper occupies an absolutely dominant position in its cost structure. According to industry research data, the proportion of copper cost in the total production cost of wire and cable is generally between 60% and 85%, with the specific proportion varying by product type. Power cables have a higher proportion of copper consumption, with most cable types having a copper consumption proportion of more than 60%, and some high-end products even reaching more than 80%.

From the perspective of specific cost composition, taking common copper core cables as an example, copper cost usually accounts for about 50%-70% of the total cost. In conductor materials, the proportion of copper (T2 oxygen-free copper rod) is 52%-68%, with the 2023 procurement guidance price range of 58,000-72,000 yuan/ton. For products such as 6491X PVC conduit wires, copper accounts for 65% of the cost structure, PVC accounts for 5%, and the remaining 30% is used to cover production, packaging, distribution and profit.

There are significant differences in copper proportions among different types of wire and cable. Communication cables have a relatively low copper consumption proportion of 20%-35% of the total weight, but due to their high technical content and high added value, copper price fluctuations still have a significant impact on them. Special cables have a copper proportion of about 30%-50%, which usually have special performance requirements such as high temperature resistance, corrosion resistance, radiation resistance, etc. Therefore, when copper prices rise by 10%, only 55%-75% is converted into market price increments.

Globally, the cost structure of the wire and cable industry is highly consistent. Data from Vietnamese wire and cable manufacturers show that copper, as the main raw material, accounts for 85% of the cost. This cost structure with a high proportion of copper makes wire and cable enterprises extremely sensitive to copper price fluctuations, and any fluctuation in copper prices will directly affect the profitability and market competitiveness of enterprises.

2.2 Analysis of Transmission Time Lag and Transmission Ratio

The transmission of copper price fluctuations to wire and cable prices has an obvious time lag effect, which is mainly caused by multiple factors such as production cycle, inventory turnover and contract performance. According to industry research, it usually takes 1-2 months for changes in copper prices to be transmitted to wire and cable prices, and in some cases, it may be extended to 2-3 months.

Formation mechanism of transmission time lag. Wire and cable enterprises usually adopt the pricing model of "material quotation + processing fee", and there is a time lag between raw material and sales linkage, and this "window period" is very likely to form a profit depression. Specifically, when copper prices rise, enterprises need to first bear the increase in raw material costs, and then adjust product prices to transfer costs to downstream customers. This process usually goes through several stages: first, the internal cost accounting and price decision-making process of the enterprise, which generally takes 7-10 days; second, the price negotiation process with major customers, which may take 15-30 days; finally, the implementation and market acceptance process of new prices, which usually takes 10-15 days.

There are significant differences in transmission time lags among different types of orders and customer groups. For long-term contract customers, especially power grid companies and large engineering contractors, due to the restrictions of contract terms, price adjustments often take longer, sometimes even need to wait until the contract expires. For retail customers and short-term orders, price adjustments are relatively flexible, with a shorter transmission time lag, usually within 15-30 days.

Differentiated characteristics of transmission ratio. The transmission of copper price fluctuations to wire and cable prices is not completely equivalent, but there is a transmission ratio problem. According to industry practice, for every 10% fluctuation in upstream copper prices, cable quotations are usually adjusted to 70%-100% of the copper cost difference. The specific transmission ratio depends on multiple factors, including product type, market competition, customer bargaining power, enterprise cost bearing capacity, etc.

The mining power cable industry usually adopts a complete transmission model, that is, a 10% increase in copper prices leads to a corresponding 10% increase in product prices. While medium and high voltage power cables, due to the limitations of contract cycles and buyer bargaining power, can usually only transmit 50%-70% of the cost increment. The transmission ratio of communication cable enterprises is more significant, with enterprises in the 5G communication field able to transfer 80%-90%, while metropolitan area network cables can only transfer 40%-60%.

Enterprise size and market position will also affect the transmission ratio. Large manufacturers have a larger cost buffer space due to the establishment of copper futures hedging tools as risk hedging, so they may choose to partially absorb costs when copper prices rise to maintain market share. While small and medium-sized enterprises, due to limited financial strength, usually transfer most of the cost pressure to customers. According to industry research, the average transmission ratio of large enterprises is about 70%-80%, while that of small and medium-sized enterprises can reach 90%-100%.

Practical case of dynamic transmission mechanism. The transmission mechanism of leading enameled wire enterprises is representative. These enterprises usually maintain a 3-month price locking mechanism to transfer market risks, and the contract terms stipulate that the price adjustment mechanism can be triggered when LME copper futures rise or fall by more than 15%. The actual dynamic transmission ratio in the industry shows a stepped特征: when the price change range is less than 10%, the enterprise usually bears the cost by itself; in the range of 10%-20%, the enterprise and the buyer negotiate the sharing ratio, such as 70% of the risk is transferred through additional order pricing; fluctuations exceeding 20% will start price locking reset negotiations.

Home decoration wire brands adopt a half-month price adjustment system in the retail market, showing another dynamic transmission model. When copper prices fluctuate by 10% suddenly, enterprises divide the retail price modification plan into three stages: bear 50% of the difference in the first price increase/decrease to maintain market share, and gradually increase the price adjustment range to 85% with the monthly inventory cycle. Market research results in Hunan show that local small and medium-sized brands had an average transmission cycle delay of 28 days in 2025, with an effective transmission total ratio of 60%-65%.

2.3 Transmission Differences in Different Markets and Product Categories

The transmission of copper price fluctuations varies significantly among different geographical markets and product categories, which is mainly due to differences in market structure, competition pattern, customer characteristics and other factors.

Transmission differences in geographical markets. Wire and cable markets in different regions of the world have obvious differences in copper price transmission mechanisms. Due to overcapacity and fierce competition in the Chinese market, copper price transmission is relatively sufficient, and enterprises can usually transmit 80%-90% of copper price fluctuations to terminal prices. In European and American markets, due to higher market concentration, large enterprises have stronger cost absorption capacity, and the copper price transmission ratio is relatively low, usually between 60%-70%.

Pricing rules for overseas engineering projects are significantly different from domestic markets. EPC project bidding documents generally include clauses allowing both parties to restart commercial negotiations when copper prices exceed 15% of the average price of the bidding quarter. According to statistics from African transnational power infrastructure cases, suppliers can only maintain 51.8% of copper cost linkage in actual operations, and additional variables in exchange rate and logistics links reduce the certainty of transmission. The centralized procurement bidding for 35kV medium-voltage lines of the Jakarta-Bandung High-Speed Railway project in Indonesia clearly adopted a fixed contract price non-adjustable bidding model, and the winning enterprise had to use a combination of futures contracts to lock 80% of the risk exposure.

Transmission differences in product categories. Different types of wire and cable products show significant differentiated characteristics in copper price transmission. High-voltage cables have strong cost transmission capacity due to high technical barriers and relatively concentrated suppliers, usually able to achieve a transmission ratio of 80%-90%. While low-voltage cables have relatively weak transmission capacity due to low technical content and fierce market competition, usually only able to transmit 60%-70% of cost increments.

Special cables show a unique model in copper price transmission due to their special performance requirements and customized characteristics. The copper proportion of such products is about 30%-50%, and when copper prices rise by 10%, enterprises only convert 55%-75% into market price increments, and the rest is internally absorbed through technological innovation, process improvement and other methods. This differentiated transmission model reflects the comprehensive strength of special cable enterprises in technological innovation and cost control.

Transmission differences in supply chain positions. An enterprise's position in the supply chain determines its bargaining strategy and cost transmission capacity. Vertically integrated enterprises with copper rod production capacity reduce intermediate procurement links, reducing cost fluctuation pressure by 32.7%. Such enterprises give priority to bearing storage during periods of stable total demand, obtaining long-term order volume protection at the cost of short-term losses. Data from the copper processing cluster in Shangrao show that raw material source participants can delay contract price transmission to 30 days later but retain complete bargaining adjustment rights, while manufacturers purchasing pure copper strips must update bidding platform price comparisons every 72 hours and transmit 92% of price changes.

1. Analysis of Differentiated Impacts on Downstream Industries3.1 Power Industry: Stable Demand Growth and Strong Price Transmission CapacityThe power industry is the largest downstream application field of wire and cable, accounting for 52.3% of copper consumption in 2023, and the demand for wire and cable accounts for as high as 41.77%. In 2025, against the background of accelerated UHV construction, the demand for wire and cable in the power industry showed a strong growth trend.

Demand scale and growth trend. State Grid investment exceeded 650 billion yuan for the first time in 2025, injecting strong impetus into the power infrastructure field. The total annual investment of State Grid and China Southern Power Grid reached 562 billion yuan, a year-on-year increase of 4.1%. Among them, State Grid plans to build 10 UHV lines with a total length of over 50,000 kilometers and an investment scale of over 300 billion yuan, which has led to a blowout growth in demand for high-voltage, extra-high voltage and UHV power cables and various supporting cables.

From the perspective of segmented markets, demand for high-voltage cables (220kV and above) increased by 35% annually, and the market scale of extra-high voltage (500kV) and UHV (±800kV) cables is expected to exceed 80 billion yuan. The overall output of the power cable industry is expected to segmented 64 million kilometers in 2025, a year-on-year increase of 3.5%, with a market scale expected to reach 557.5 billion yuan.

Analysis of price transmission capacity. As the largest demand side for wire and cable, the power industry has strong price transmission capacity. As state-owned enterprises, power grid companies have relatively independent and autonomous procurement decisions and can better absorb the cost pressure brought by rising copper prices. At the same time, power grid investment is usually included in national infrastructure construction plans, with relatively stable funding sources and relatively low sensitivity to price fluctuations.

From historical data, the power industry has a high acceptance of wire and cable price increases. In the first half of 2025, despite the sharp rise in copper prices, the procurement volume of wire and cable in the power industry still maintained growth, indicating that the industry has strong cost bearing capacity. Especially in key projects such as UHV, due to high technical requirements and relatively concentrated suppliers, wire and cable enterprises have strong bargaining power and can transfer most of the copper price increase costs to power grid companies.

Impact on power grid construction. The impact of rising copper prices on power grid construction is mainly reflected in cost control and project progress. On the one hand, rising copper prices increase the material cost of power grid construction. It is estimated that for every 10% increase in copper prices, power grid construction costs increase by about 1.5%-2%. On the other hand, rising wire and cable prices may lead to investment overruns in some projects, requiring cost control through design optimization, improved material utilization and other methods.

However, in the long run, the growth trend of demand for wire and cable in the power industry will not change. With the rapid growth of new energy installed capacity, the power grid needs to undergo large-scale upgrading and transformation, including the construction of more transmission lines, substations, distribution facilities, etc., which will bring huge demand for wire and cable. It is expected that by 2030, the demand for wire and cable in the power industry will maintain an average annual growth rate of 5%-6%.

3.2 Construction Industry: Relatively Stable Demand but Declining Proportion

The construction industry is the second largest application field of wire and cable, but its proportion has shown a downward trend in recent years. The proportion of copper consumption in the construction industry was 16.1% in 2023, down 6.3 percentage points from 22.4% in 2020, and is expected to further decline to about 14% in 2025.

Demand status and structural changes. The market size of China's construction wire and cable industry is expected to reach 612.87 billion yuan in 2025, a year-on-year increase of 4.3%, slightly higher than the growth rate in 2024. The global demand for cables in the construction industry is about 24 million kilometers, of which residential buildings account for 58% and commercial buildings account for 42%. The construction sector accounts for more than 30% of the global wire and cable market share, and it is expected that by 2025, demand for wire and cable in the construction sector will grow to $40 billion.

The structure of wire and cable demand in the construction industry is undergoing profound changes. Demand growth for traditional residential buildings has slowed down, while demand for commercial buildings, infrastructure construction, smart cities and other emerging fields is growing rapidly. Especially under the promotion of the "dual carbon" goal, demand for high-performance wire and cable in green buildings and energy-saving buildings is increasing. The application proportion of environmentally friendly cables in infrastructure projects will increase from 30% in 2024 to 40%-45% in 2025.

Price sensitivity analysis. The construction industry is highly sensitive to wire and cable prices, mainly due to: first, real estate development enterprises face great cost control pressure and have limited bearing capacity for rising raw material prices; second, construction projects usually adopt bidding methods for procurement, with fierce price competition; third, demand fluctuations in the downstream real estate market directly affect the procurement decisions of construction enterprises.

The impact of rising copper prices on the construction industry is mainly transmitted through two channels: first, directly increasing construction material costs, thereby pushing up real estate prices, which may suppress housing purchase demand; second, affecting the cash flow and profitability of construction enterprises, especially in the case of long project cycles, copper price fluctuations may lead to project losses.

From the market reaction, the construction industry has relatively low acceptance of wire and cable price increases. Since 2025, many real estate development enterprises have stated that due to rising prices of building materials such as wire and cable, project cost pressure has increased, and profit margins of some projects have declined. Some enterprises have tried to reduce costs by optimizing design and using alternative materials, but the effect is limited.

Future development trends. Although the proportion of wire and cable demand in the construction industry is declining, the absolute demand is still growing. With the advancement of urbanization and the acceleration of urban renewal, demand for wire and cable in the construction industry will maintain steady growth. Especially under the promotion of policies such as new urbanization, urban infrastructure construction, and old community renovation, the construction industry is expected to usher in new growth opportunities for wire and cable demand.

It is expected that in the next few years, wire and cable demand in the construction industry will show the following characteristics: first, the demand structure will continue to optimize, with the proportion of demand for commercial buildings and public buildings increasing; second, requirements for product quality and performance will improve, with demand for high-end wire and cable growing; third, green environmental protection will become the mainstream, with demand for environmentally friendly wire and cable growing; fourth, the market share of environmentally friendly wire and cable will continue to expand.

3.3 New Energy Industry: Explosive Growth and Becoming a New Growth Engine

The new energy industry has become the fastest-growing field of wire and cable demand, showing a strong development momentum and huge market potential. In 2025, driven by the "dual carbon" goal, demand for wire and cable in wind power, photovoltaic, new energy vehicles and other fields showed explosive growth.

Demand scale and growth drivers. Demand for wire and cable in the new energy industry shows an all-round and multi-level growth trend. In the wind power field, the procurement amount of wind power supporting cables is expected to grow to 21.03 billion yuan in 2025, an increase of 12.9%, and the wind power cable market scale is expected to reach 77.86-82.75 billion yuan. China's new offshore wind power installed capacity will reach more than 10GW, driving a significant increase in demand for extra-high voltage submarine cables. The demand for 66kV and above high-voltage cables for offshore wind power grew by 28% year-on-year in 2023, and is expected to maintain a high growth rate of over 20% in the next three years.

Demand growth in the photovoltaic field is even more rapid. The procurement amount of photovoltaic supporting cables is expected to grow to 17.28 billion yuan in 2025, an increase of 12.3%. The photovoltaic cable market scale has reached about 68 billion yuan, accounting for 36.5% of the overall new energy cable market, and is expected to increase to 104.23-122.86 billion yuan by 2025. The annual demand for photovoltaic cables is expected to Breakthrough 500,000 kilometers, and the annual shipment growth rate of photovoltaic cables has maintained above 45% for three consecutive years.

New energy vehicles and charging infrastructure have become another important growth pole. The State Council's "New Energy Vehicle Industry Development Plan" proposes a target of 20% new energy vehicle sales by 2025, and demand for charging pile supporting cables will maintain a high growth rate of over 25%. It is expected that the market scale of charging pile cables will reach 28.75 billion yuan by 2025. The copper consumption of new energy vehicles is 5 times that of fuel vehicles. Global electric vehicle sales are expected to Breakthrough 40 million in 2025, which alone will drive copper demand of over 3 million tons.

Product technical requirements and market characteristics. The technical requirements of the new energy industry for wire and cable are much higher than those in traditional application fields, mainly reflected in the following aspects: first, high environmental adaptability requirements, wind power and photovoltaic cables need to operate stably for a long time in harsh environments such as extreme temperatures, strong ultraviolet rays, salt spray corrosion; second, strict performance requirements, new energy cables need to have high temperature resistance, aging resistance, flame retardancy, low smoke and halogen-free characteristics; third, high safety requirements, especially in new energy vehicle charging facilities, strict requirements for cable insulation performance, current carrying capacity, protection level, etc.

The new energy cable market shows the following characteristics: first, high technical barriers and high added value, with gross profit margins usually 10-15 percentage points higher than ordinary cables; second, high customer concentration, with main customers being large new energy enterprises and equipment manufacturers; third, high customization degree, requiring personalized solutions according to different application scenarios; fourth, strict certification requirements, requiring multiple international and domestic certifications.

Price bearing capacity assessment. The new energy industry has relatively strong bearing capacity for wire and cable price increases, mainly due to: first, new energy projects usually have policy support and subsidies, with strong bearing capacity for cost increases; second, new energy equipment has high technical content and high added value, able to absorb part of raw material cost increases; third, the new energy market is in a period of rapid growth, and enterprises pay more attention to market share and long-term development, with relatively low sensitivity to short-term price fluctuations.

However, the impact of rising copper prices on the new energy industry cannot be ignored. According to industry analysis, for every 10% increase in copper prices, the system cost of new energy projects increases by about 2%-3%. In the photovoltaic field, rising copper prices lead to increased module costs, which may affect the economy of photovoltaic power generation. In the wind power field, rising copper prices increase the cost of wind turbines and transmission systems. In the new energy vehicle field, rising copper prices directly affect the total vehicle cost, which may affect the market competitiveness of new energy vehicles.

From the market reaction, new energy enterprises generally respond to rising copper prices in the following ways: first, strengthen technological innovation to reduce copper consumption through design optimization and adoption of new materials; second, sign long-term procurement agreements to lock in raw material prices; third, increase product prices to transfer cost pressure to downstream customers; fourth, strengthen supply chain management to find more competitive suppliers.

Development prospects. As a national strategic emerging industry, the new energy industry has broad development prospects. According to industry forecasts, by 2030, wind power and photovoltaic installed capacity will reach over 1.2 billion kilowatts, and new energy vehicle sales will account for over 40%, which will bring huge demand for wire and cable. It is expected that the average annual growth rate of wire and cable demand in the new energy field will reach 15%-20%, much higher than that in traditional application fields.

Development trends in the new energy cable market include: first, products developing towards high-end and intelligent directions, such as high-temperature cables, superconducting cables, smart cables; second, continuous expansion of application fields, such as energy storage systems, hydrogen energy equipment, marine energy and other emerging fields; third, green environmental protection becoming an inevitable trend, with demand for bio-based cables, recyclable cables and other environmental protection products growing; fourth, increasing localization rate, with local enterprises making greater breakthroughs in technological innovation and market share.

1. Forecast of Wire and Cable Price Trends4.1 Short-term Price Forecast (Next 3-6 Months)Based on a comprehensive analysis of copper price trends, supply-demand relations, seasonal factors and other dimensions, it is expected that wire and cable prices will continue to rise in the next 3-6 months (November 2025 to April 2026), but the increase may slow down.

Price outlook for the fourth quarter of 2025. In the fourth quarter of 2025, wire and cable prices will continue to be supported by high copper prices. According to the latest data, LME copper prices have Breakthrough $10,900/ton at the end of October, and COMEX copper prices have exceeded $5.2/pound. It is expected that copper prices will fluctuate at a high level in the range of $10,500-$11,000/ton in November-December. Against this background, wire and cable prices will maintain an upward trend, but considering that the fourth quarter is usually a relatively off-season for wire and cable demand, the increase may narrow compared with the third quarter.

According to industry analysis, with the implementation of fiscal stimulus policies in various countries in the second half of 2025 (such as the EU Green Infrastructure Plan), demand recovery coupled with cost pressure will push wire and cable prices into an upward channel, with an expected annual increase of 5%-8%. Among them, new energy cables (photovoltaic, charging piles) may have a price increase of more than 10% due to high technical barriers and tight supply-demand.

From the perspective of specific products, high-voltage and UHV cables may have a price increase of 8%-12% driven by strong demand and relatively concentrated suppliers; medium and low-voltage cables may have an increase of 5%-8% due to fierce market competition; communication cables and data cables may have an increase of 6%-10% driven by 5G construction and data center demand.

Forecast for the first quarter of 2026. Entering the first quarter of 2026, the price trend of wire and cable will be affected by multiple factors. On the one hand, before and after the Spring Festival is usually the off-season for wire and cable production and sales, and demand may show a seasonal decline; on the other hand, copper prices are expected to remain high, with LME copper price forecast between $10,200-$10,700/ton in January.

Considering supply and demand factors comprehensively, it is expected that wire and cable prices will remain stable or rise slightly in the first quarter of 2026, with an increase of 2%-5%. Among them, power cables may remain firm driven by the start of power grid construction projects; construction cables may decline slightly affected by the off-season of the real estate market; new energy cables may see a slowdown in price increases affected by delayed project start-ups.

Analysis of influencing factors. The main factors affecting wire and cable prices in the next 3-6 months include:

Copper price trend is the most critical factor. According to international investment bank forecasts, copper prices will remain above $10,000/ton by the end of 2025 to early 2026, with main supporting factors including tight global copper supply, continued growth in new energy demand, weak US dollar, etc. But we should also pay attention to possible downside risks, such as slowing global economic growth, lower-than-expected demand in China, release of new production capacity, etc.

Supply-demand relationship is the fundamental factor determining prices. From the demand side, power infrastructure, new energy projects, 5G construction will continue to drive wire and cable demand growth; from the supply side, wire and cable production capacity is relatively sufficient, but under the background of high copper prices, some enterprises may face capital pressure, affecting operating rates. It is expected that supply and demand will be basically balanced and slightly tight, supporting prices to remain high.

Seasonal factors cannot be ignored. The fourth and first quarters are traditional off-seasons for wire and cable demand, especially around the Spring Festival, construction and equipment installation activities decrease, reducing demand for wire and cable. But with the rapid development of new energy projects, the impact of seasonal factors is weakening.

Policy factors may bring uncertainty. US tariff policies on copper products, China's "dual carbon" policies, infrastructure investment plans of various countries may affect wire and cable demand and prices. In particular, changes in US tariff policies may lead to a reshape of global copper trade patterns, thereby affecting copper prices and wire and cable prices.

4.2 Medium-term Price Outlook (2026 Full Year)

Looking forward to the full year of 2026, wire and cable prices will show a steady upward trend under the combined influence of high copper prices, optimized demand structure and technological upgrading.

Price level forecast. Based on copper price forecasts and transmission mechanism analysis, it is expected that wire and cable prices will increase by 5%-10% in 2026 compared with 2025. Among them, power cables may increase by 8%-12% driven by UHV construction and grid transformation; new energy cables may increase by 10%-15% driven by wind power, photovoltaic and new energy vehicle demand growth; communication cables and data cables may increase by 6%-10% driven by 5G/6G technology development; construction cables may increase by 3%-5% affected by real estate market adjustment.

From the price level, it is expected that prices of major wire and cable products will reach the following levels in 2026 (taking the Chinese market as an example):

Copper core power cable (YJV 3×95+1×50): 200-230 yuan/meter (2025 average price 185 yuan/meter)

Copper core power cable (YJV 3×240+1×120): 450-520 yuan/meter (2025 average price 410 yuan/meter)Photovoltaic cable (PV1-F 1.5mm²): 6.5-7.5 yuan/meter (2025 average price 5.8 yuan/meter)Wind power cable (3×35+1×16): 150-180 yuan/meter (2025 average price 135 yuan/meter)Charging pile cable (3×25+2×16): 85-100 yuan/meter (2025 average price 76 yuan/meter)

Structural change trends. The wire and cable market will show obvious structural differentiation characteristics in 2026:

The price gap between high-end and low-end products will further widen. With technological progress and higher environmental protection requirements, the technical content and added value of high-end wire and cable products will continue to increase, and price increases will be significantly higher than ordinary products. Especially in new energy, data centers, high-end equipment and other fields, demand for high-performance wire and cable is growing rapidly, driving up prices of related products.

Price trends in different application fields will diverge. In national key supported fields such as power infrastructure, new energy, 5G, wire and cable demand is strong, with sufficient upward momentum for prices; in traditional construction, ordinary industry and other fields, demand growth will slow down, with weak upward momentum for prices.

Regional market price differences will expand. In economically developed regions and emerging industry concentration areas, prices may be higher than the national average due to strong demand and sufficient competition; in less developed regions, prices may be lower than the national average due to relatively weak demand.

Key influencing factors. Key factors affecting wire and cable prices in 2026 include:

Copper price trend remains the decisive factor. According to international institutions' forecasts, copper prices will remain in the high range of $9,500-$11,000/ton in 2026, with main supporting factors including limited growth in global copper supply, continued strong new energy demand, weak US dollar, etc. But we should also pay attention to possible downside risks, such as global economic recession, sharp adjustment of China's real estate market, Exceed expectations release of copper mine production capacity, etc.

Demand structure will continue to optimize. In 2026, demand for wire and cable in emerging fields such as new energy, data centers, 5G/6G, and intelligent manufacturing will continue to grow rapidly, while demand growth in traditional construction, ordinary industry and other fields will slow down. This structural change will promote wire and cable products to develop towards high-end and intelligent directions, driving up the overall price level.

Technological progress will affect the cost structure. With the application of new materials, new processes and new technologies, the production efficiency of wire and cable will improve and unit costs will decrease. For example, the use of high-conductivity copper alloys, optimized conductor structures, and improved insulation materials can reduce copper consumption while ensuring performance. It is expected that technological progress will reduce copper consumption per unit product by 2%-5%, partially offsetting the impact of rising copper prices.

The policy environment will continue to optimize. In 2026, countries will continue to promote the "dual carbon" goal and increase support for new energy, energy conservation and environmental protection. China will continue to implement proactive fiscal policies and prudent monetary policies, increase infrastructure investment, especially in new infrastructure and green development. These policies will create a favorable development environment for the wire and cable industry, supporting demand growth and price stability.

4.3 Key Risk Factors Affecting Price Trends

Wire and cable price trends face multiple risk factors, which may lead to unexpected fluctuations in prices and require close attention and timely response.

Risk of sharp fluctuations in copper prices. Copper prices are the core factor affecting wire and cable prices, and their sharp fluctuations will be directly transmitted to wire and cable prices. According to historical experience, the annual volatility of copper prices is usually between 20%-30%, but may exceed 50% in special cases. From August to October 2025, copper prices have risen by more than 14%. If copper prices continue to rise sharply or fall rapidly in the future, it will have a significant impact on wire and cable prices.

Risk factors for sharp fluctuations in copper prices include: geopolitical conflicts may lead to disruption of copper supply chains, such as political instability in major copper-producing countries such as Chile and Peru; extreme weather events may affect copper mine production and transportation, such as floods and droughts; financial market turmoil may trigger speculative fluctuations in copper prices, such as sharp fluctuations in the US dollar and liquidity crises; technological progress may change the demand structure for copper, such as new material substitution and breakthroughs in recycling technology.

Supply chain disruption risk. The wire and cable industry has a long supply chain, from copper mining, smelting, processing to wire and cable manufacturing. Disruption in any link may affect the supply and price of final products. Especially against the background of the current fragile global supply chain, the risk of supply chain disruption has significantly increased.

Risk factors for supply chain disruption include: policy changes in major copper-producing countries, such as export restrictions and tax adjustments; safety risks in transportation channels, such as geopolitical risks in shipping routes and congestion at key transportation nodes; safety risks in production facilities, such as factory accidents, equipment failures and strikes; raw material shortage risks, such as tight supply of copper concentrate and increased smelting costs due to rising energy prices.

Risk of sharp fluctuations in demand. Demand for wire and cable is closely related to the macro economy, and changes in the economic cycle will directly affect demand and prices for wire and cable. Especially against the background of many uncertainties facing the global economy, the risk of sharp fluctuations in demand cannot be ignored.

Risk factors for sharp fluctuations in demand include: global economic recession risk, if major economies fall into recession, it will lead to reduced infrastructure investment, sluggish real estate market and declining industrial production, thereby affecting wire and cable demand; slowdown in China's economic growth, if China's economic growth rate drops significantly, it will have a major impact on global copper demand, as China accounts for more than 50% of global copper consumption; policy change risks, such as adjustments in new energy policies, changes in infrastructure investment directions, and higher environmental protection requirements, may affect wire and cable demand.

Technology substitution risk. With technological progress, some new materials and technologies may replace traditional copper wire and cable, which will have a long-term impact on the wire and cable industry.

Risk factors for technology substitution include: improvement of aluminum conductor technology, such as high-strength aluminum alloys and rare earth aluminum alloys, may replace copper conductors in some application fields; breakthroughs in superconducting technology, if room-temperature superconducting technology is commercialized, will have a disruptive impact on the wire and cable industry; development of wireless transmission technology, such as the popularization of 5G and 6G wireless communication technologies, may reduce demand for communication cables; application of new insulating materials, such as graphene and carbon nanotubes, may improve the performance of wire and cable and reduce copper consumption.

Policy risk. Changes in national policies may have a significant impact on the wire and cable industry, especially trade policies, environmental policies and industrial policies.

Policy risk factors include: rise of trade protectionism, such as the US imposing tariffs on Chinese wire and cable products, which may affect exports and prices; stricter environmental policies, such as the promotion of carbon peak and carbon neutrality goals, may increase compliance costs for enterprises; adjustment of industrial policies, such as changes in new energy subsidy policies and adjustment of infrastructure investment directions, may affect demand structure; higher standards and certification requirements, such as updates to international standards and higher safety certification requirements, may increase R&D and production costs for enterprises.

1. Risk Management Recommendations and Response Strategies5.1 Risk Management Measures for Wire and Cable EnterprisesFacing cost pressures and operational risks brought by sharp fluctuations in copper prices, wire and cable enterprises need to establish a sound risk management system and adopt diversified risk hedging tools to ensure the stability and sustainability of business operations.

Establish a "futures + spot" combined procurement model. Wire and cable enterprises should make full use of the futures market for hedging and establish a "futures + spot" combined procurement model. Specifically, enterprises can lock a certain proportion of copper procurement prices in the futures market according to production plans and inventory conditions, and it is usually recommended to lock 30%-70% of demand. Hedging through copper futures contracts on the Shanghai Futures Exchange can effectively lock in raw material costs and avoid price fluctuation risks.

Hedging strategies should be designed according to the actual situation of enterprises. For order-driven enterprises, a long hedging strategy can be adopted, that is, buying copper futures contracts equivalent to future procurement volume in the futures market to lock in procurement prices; for inventory-based enterprises, a short hedging strategy can be adopted, that is, selling copper futures contracts equivalent to inventory in the futures market to lock in inventory value. Enterprises can also dynamically adjust the hedging ratio according to copper price trends and market expectations, increasing hedging volume when copper prices are low and reducing hedging volume when copper prices are high.

Optimize pricing mechanisms and contract terms. Wire and cable enterprises should establish flexible pricing mechanisms, adopt the "material cost + processing fee" model, and set price adjustment clauses in contracts. Specific recommendations include:

Establish a monthly or quarterly price adjustment mechanism to adjust product prices in a timely manner according to changes in copper prices. Generally speaking, when copper prices fluctuate by more than 5%, the price adjustment procedure can be initiated; when copper prices fluctuate by more than 10%, price adjustment should be mandatory.

Clearly define price adjustment formulas in contracts, for example: adjusted price = benchmark price × (1 + copper price change rate × transmission ratio). Among them, the transmission ratio is determined according to product type and market conditions, generally between 70% and 100%.

For long-term contracts, a segmented pricing method can be adopted, dividing the contract period into several stages, with different price benchmarks for each stage to reduce price risks. At the same time, price ceilings and floors can be set in contracts to protect the interests of both parties.

Strengthen inventory management and supply chain optimization. Reasonable inventory management is an important means to cope with copper price fluctuations. Enterprises should formulate scientific inventory strategies based on production plans, market demand, capital conditions and other factors:

Establish a dynamic inventory management system to adjust inventory levels according to copper price trends and demand forecasts. When copper prices are low, strategic inventory can be appropriately increased; when copper prices are high, inventory should be reduced and an "production according to sales" model should be adopted.

Optimize supply chain management, establish long-term cooperative relationships with upstream suppliers, and ensure the stability of raw material supply by signing annual procurement agreements and establishing strategic inventory. At the same time, actively develop diversified supply channels to reduce dependence on a single supplier.

Strengthen communication with downstream customers, understand customer demand plans, reasonably arrange production and delivery schedules, and reduce inventory backlogs and capital occupation.

Enhance product added value and technological innovation capabilities. Facing cost pressures brought by rising copper prices, wire and cable enterprises should accelerate product structure adjustment and enhance product added value:

Increase R&D investment to develop high-end products and special cables, such as new energy cables, data center cables, and marine engineering cables, which have high technical content and high added value and strong bearing capacity for price increases.

Promote technological innovation to reduce copper consumption per product through process improvement, design optimization, and adoption of new materials. For example, the use of high-conductivity copper alloys, optimized conductor structures, and new insulating materials can reduce copper consumption while ensuring performance.

Strengthen brand building, enhance brand value and market recognition, and partially offset the impact of cost increases through brand premium.

5.2 Cost Control Strategies for Downstream Enterprises

As purchasers of wire and cable, downstream enterprises also face cost pressures brought by rising copper prices and need to take active response measures to control procurement costs and improve competitiveness.

Establish long-term cooperative relationships and strategic procurement mechanisms. Downstream enterprises should establish long-term strategic cooperative relationships with high-quality wire and cable suppliers, and lock in procurement prices and supply volumes by signing framework agreements and annual contracts:

Adopt joint procurement methods, with multiple projects or enterprises joining together for bulk procurement to improve bargaining power and obtain more favorable prices. This is especially effective for standardized products.

Establish a supplier evaluation system to comprehensively evaluate suppliers' product quality, price levels, delivery capabilities, service quality, etc., and select high-quality suppliers to establish long-term cooperative relationships. Through survival of the fittest, suppliers are encouraged to improve competitiveness.

Set price adjustment mechanisms in contracts to protect both parties' interests. Cost-plus pricing and market price linkage can be adopted to achieve risk sharing.

Optimize product design and material substitution. Downstream enterprises should reduce dependence on high-priced wire and cable through technological innovation and design optimization:

In the product design stage, fully consider material cost factors and reduce wire and cable usage through optimizing circuit design and adopting new components. For example, under the premise of ensuring electrical performance, smaller cross-section cables or high-conductivity materials can be used.

Actively explore material substitution solutions, using aluminum conductors and alloy conductors to replace some copper conductors without affecting product performance. Although aluminum has lower conductivity than copper, in some application scenarios, the same electrical performance can be achieved by increasing conductor cross-section, while reducing costs.

Promote product standardization and modular design to improve component commonality and interchangeability, reduce customization and procurement costs.

Strengthen inventory management and demand forecasting. Downstream enterprises should establish scientific inventory management systems to optimize inventory structure and reduce inventory costs:

Classify and manage wire and cable using the ABC classification method. For high-volume, high-price Class A products, strictly control inventory and adopt "zero inventory" or "low inventory" strategies; for low-volume, low-price Class C products, appropriately increase inventory to reduce procurement frequency.

Establish demand forecasting models to predict future wire and cable demand based on historical data, market trends, customer demand and other factors, and reasonably arrange procurement plans. Accurate demand forecasting can reduce inventory backlogs and capital occupation.

Adopt JIT (Just-In-Time) procurement models, establish rapid response mechanisms with suppliers, and adjust procurement plans in a timely manner according to production plans and order conditions to achieve "on-demand procurement and immediate supply".

Explore new procurement models and financial tools. Downstream enterprises can explore the use of financial tools and innovative procurement models to reduce procurement costs and risks:

Use financial tools such as forward contracts and options to lock in future procurement prices. For example, sign forward procurement contracts with suppliers to lock in procurement prices for the next 3-6 months; or purchase copper price put options to obtain compensation when copper prices fall.

Adopt new business models such as "trade-in" and "leasing" to reduce demand for new wire and cable procurement. Especially for temporarily used or periodically used equipment, leasing can reduce one-time investment costs.

Participate in joint bidding and centralized procurement for wire and cable to reduce procurement costs through economies of scale. At the same time, procurement through Internet platforms can improve procurement transparency and reduce procurement costs.

5.3 Industry Development Recommendations

To promote healthy industry development and improve overall competitiveness, it is recommended to strengthen industry construction and development in the following aspects.

Strengthen industry self-discipline and standard construction. The wire and cable industry should establish a sound industry self-discipline mechanism, standardize market order and avoid vicious competition:

Establish an industry price coordination mechanism to regularly release industry price indices and cost analysis reports to guide enterprises in reasonable pricing. Through industry self-discipline, avoid vicious competition such as low-price dumping.

Improve the industry standard system, accelerate the formulation and revision of wire and cable product standards, test method standards, safety standards, etc., to improve the scientificity and advancement of standards. In particular, strengthen standard formulation for new products such as new energy cables and smart cables.

Strengthen quality supervision, establish product quality traceability systems, and supervise the entire process from raw material procurement to production, processing, sales and service to ensure product quality meets standard requirements.

Promote technological innovation and industrial upgrading. Facing challenges of high copper prices and intensified market competition, the wire and cable industry must accelerate technological innovation and industrial upgrading:

Increase R&D investment to focus on developing high-performance, high-value-added new products such as superconducting cables, graphene cables and smart cables. Through technological innovation, improve product technical content and market competitiveness.

Promote intelligent manufacturing and digital transformation to improve production efficiency and reduce production costs through automated production, intelligent warehousing and digital management. In particular, use big data and artificial intelligence to optimize production processes and improve product quality.

Strengthen industry-university-research cooperation, establish long-term cooperative relationships with universities and research institutes, and jointly carry out technological R&D and talent training. Through collaborative innovation, accelerate the transformation of scientific and technological achievements and improve the industry's overall technological level.

Optimize industrial layout and regional coordinated development. The wire and cable industry should optimize industrial layout based on resource distribution, market demand, industrial foundation and other factors:

Guide industries to transfer to resource-rich areas and market demand concentration areas to reduce logistics costs and improve market response speed. In particular, support the development of the wire and cable industry in central and western regions to promote regional coordinated development.

Strengthen industrial cluster construction to reduce production costs and improve competitiveness through industrial agglomeration effects. Focus on supporting the construction of world-class wire and cable industrial clusters in the Yangtze River Delta, Pearl River Delta, Beijing-Tianjin-Hebei and other regions.

Promote international industrial development, encourage enterprises to "go global", participate in international competition and explore international markets. In particular, seize the "Belt and Road" opportunity to strengthen cooperation with countries along the route and promote Chinese wire and cable products and technologies to the world.

Establish risk early warning and emergency mechanisms. Facing the complex and changeable market environment, the wire and cable industry should establish sound risk early warning and emergency mechanisms:

Establish an industry risk monitoring system to conduct real-time monitoring of copper price trends, supply-demand relations, policy changes, etc., and issue risk early warning information in a timely manner. Scientific risk assessment helps enterprises prepare in advance.

Formulate emergency plans for possible supply chain disruptions, sharp price fluctuations, significant changes in market demand, etc. Through plan drills, improve the industry's ability to respond to emergencies.

Strengthen information sharing and collaborative response, establish industry information sharing platforms to exchange market information, technical information, policy information, etc. Through collaborative cooperation, jointly respond to industry challenges.

Conclusion

From August to October 2025, international copper prices experienced a strong rise, with LME copper prices surging from $9,535/ton to $10,947/ton, an increase of 14.8%, and COMEX copper prices breaking through the $5/pound mark, hitting a 15-month high. This round of copper price increases was the result of multiple supply-side shocks, explosive demand-side growth and macro-policies, which had a profound impact on the global wire and cable industry.

Copper price fluctuations directly affect wire and cable prices through cost transmission mechanisms. Since copper accounts for 60%-85% of wire and cable costs, for every 10% increase in copper prices, wire and cable prices need to be adjusted by 70%-100%. The transmission time lag is usually 1-2 months, and transmission ratios vary significantly among different markets and product categories.

The impact on downstream industries shows obvious differentiation: the power industry, as the largest demand side, has stable demand growth and strong price transmission capacity driven by accelerated UHV construction; the construction industry's demand proportion has dropped to 16.1%, with high sensitivity to price increases; the new energy industry has become a new growth engine, with demand growth rates exceeding 12% in wind power, photovoltaic and other fields, and relatively strong bearing capacity for price increases.

Based on copper price trends and supply-demand analysis, it is expected that wire and cable prices will maintain an upward trend in the next 6 months, with an estimated annual increase of 5%-8% in 2025, among which new energy cables may increase by more than 10%. Prices will continue to rise by 5%-10% in 2026 on a high basis, showing structural differentiation characteristics.

Facing copper price fluctuation risks, it is recommended that wire and cable enterprises strengthen hedging, adopt "futures + spot" combined procurement models, establish dynamic pricing mechanisms and optimize inventory management. Downstream enterprises should establish long-term cooperative relationships, optimize product design, strengthen inventory management and explore new procurement models. At the industry level, self-discipline and standard construction should be strengthened, technological innovation and industrial upgrading promoted, and risk early warning mechanisms established to promote healthy and sustainable industry development.

Copper price fluctuations are a long-term challenge for the wire and cable industry, and enterprises must establish sound risk management systems and improve response capabilities. At the same time, opportunities amid challenges should be recognized, and enterprise competitiveness enhanced through technological innovation, product upgrading and management optimization to achieve high-quality development. Only in this way can enterprises remain invincible in the complex and changeable market environment.