For the Quarter Ending June 2023



North America

The price of copper wire in the US experienced a stagnant trend in the second quarter of 2023. Macroeconomic factors played a significant role in maintaining its stability. At the beginning of Q2, there was an unexpected decline in the Producer Price Index in the USA, which alleviated some downward pressure on copper wire manufacturing and caused prices to rise. The supply-demand rate remained stable, indicating that the US government was nearing the end phase of an interest rate hike and would decrease it in the coming weeks. However, market conditions deteriorated in the latter half of the quarter due to a debt crisis caused by the downfall of several major banks. As a result, buyers adopted a wait-and-watch approach, and purchasing rates were solely based on demand. Despite this, the consumption rate of copper wire remained steady across the German spot market due to downstream infrastructural development and the growing electrification of various mills.

Asia-Pacific

The Asian market witnessed an upward price trend for copper wire in the second quarter, driven by an optimistic market sentiment in China. Copper smelting mills in China operated at a solid rate, supported by a stable domestic consumption rate. Government policies and rising production costs in the Chinese spot market provided strong cost support for copper wire production. Although manufacturing activity did not keep pace with the surging demand, the inventory level remained relatively low. Supply disruptions in some domestic warehouses allowed mills to stabilize and operate at full capacity. The supply of copper scrap also remained stable, contributing to the upward momentum of copper prices. However, the uncertain economic condition led to a slight decline in the price of copper wire as overseas countries, including the US and Eurozone, banned the import of Chinese-origin commodities. This resulted in increased local Chinese inventory levels. Import rates rose due to attractive subsidy policies offered by the Chinese government, further exacerbating the oversupply situation. Local mills resorted to selling copper wire in surplus amounts at lower prices in order to bridge the supply-demand gap. With market sentiment turning bearish, buyers were cautious and only made on-demand purchases in the Chinese spot market.

Get Real Time Prices of Copper Wire: https://www.chemanalyst.com/Pricing-data/copper-wire-1359

Europe

In the German spot market, the price of copper wire remained stable in the second quarter due to macroeconomic factors. Copper smelting mills operated efficiently, ensuring a steady supply of copper wire. Buyer demand remained consistent as they adopted a wait-and-watch approach, making purchases based on their immediate needs. The weakening of the US dollar provided a strong foundation for the price stability of copper wire, and it was expected that interest rate hikes in Germany would soon come to an end. The decarburization and electrification efforts in various copper smelting mills contributed to high consumption rates and further stabilized prices. However, the purchasing power of consumers decreased, leading to an increase in local inventory levels of copper wire. To address this, the German government imposed countervailing duties on cheaper copper products imported from Asian markets, particularly China. The domestic consumption rate of copper wire was affected by the worsening economic conditions in the latter half of Q2, with the German economy entering a recession and experiencing a rise in inflation. The downturn in the automotive industry, particularly electric vehicle sales, resulted in an oversupply of copper wire. To boost consumption and revive the economy, the German government is planning to sign various deals aimed at uplifting the copper wire market.