Copper prices are often talked about in relation to the cost of electrical cables – but what does that actually mean, and why does it impact cabling?
Copper is a fundamental material used throughout the electrical industry and demand for it continues to rise globally. At the same time, supply pressures, pricing volatility and increasing manufacturing costs are affecting cable manufacturers, wholesalers and contractors alike.
For electrical contractors, understanding the factors driving copper pricing helps explain fluctuations in cable costs, availability and lead times. Our friends at the Australian Cable Initiative explain all.
Copper is widely used across the electrical industry because of its:
Copper is commonly used in:
Its practicality and performance continue to drive strong global demand.
The dramatic rise in the prices of precious metals such as gold and silver has been widely reported in recent years. Copper, however, has also experienced significant price increases.
While gold and silver have reportedly tripled in price since 2024, copper prices have nearly doubled over the same period.
Unlike precious metals often associated with investment demand, copper’s value is closely tied to industrial demand and practical applications.
Copper is traded globally on major exchanges including:
These exchanges establish global pricing benchmarks, although pricing variations still occur between markets.
Copper pricing experienced strong volatility and an upward trend during 2025, with Australian buyers also impacted by fluctuations in the AUD to USD exchange rate.
Purchasing copper also involves cathode premiums, which are charged in USD and have reportedly increased fourfold in recent years.
Manufacturers focused on Environmental Social and Governance (ESG) standards are increasingly selecting sustainable and high-purity cathodes, contributing to higher premium costs.
Copper demand is driven by necessity rather than short-term trends.
Its unique combination of conductivity, strength and reliability makes it critical across a range of industries and technologies.
Growing demand sectors include:
Forecasts suggest a potential global copper supply shortage of between 300,000 and 600,000 tonnes by the end of 2026, which could place further upward pressure on pricing.
Strong demand in the United States is also diverting supply and contributing to higher premiums in other markets.
Copper and aluminium are both commonly used as conductor materials in electrical cabling, but there are important differences between the two.
Aluminium requires an approximately 60% larger cross-sectional area than copper to achieve the same resistance value.
This creates challenges in space-sensitive environments such as:
Aluminium also forms an insulating oxide layer when exposed to air, requiring additional precautions during termination and installation.
Recent actions in the Middle East have contributed to higher crude oil prices and reduced availability of oil-based products.
This is significant for the cable industry because many cable polymers – including insulation and sheath materials – are derived from oil products.
As a result, both pricing and availability of cable materials may be adversely affected.
The cable industry continues to face significant pricing and supply challenges across multiple fronts.
Operational strategies being used across the sector include:
These strategies aim to reduce risk while maintaining supply continuity.
Predicting future metal pricing remains difficult, particularly during periods of geopolitical instability.
Following US action involving Iran on 28 February 2026, market attention shifted heavily towards oil pricing, while copper prices reportedly fell by approximately 7% at the time of writing.
Despite short-term fluctuations, the long-term demand drivers for copper remain strong due to continued growth in infrastructure, energy and technology sectors.
Copper is one of the world’s most recyclable metals, making it a highly sustainable material for ongoing industrial use.
Recycling initiatives such as the RecyCable project being developed by ACI Member JR Hammer are helping extend the usable life of critical resources and support more sustainable industry practices.
Copper is a major raw material used in electrical cable manufacturing, so increases in copper pricing directly affect production costs.
Demand is increasing because of growth in renewable energy, electric vehicles, EV charging infrastructure and data centres.
Aluminium can be used in some applications, but it requires a larger cross-sectional area and additional precautions during installation.
Cable insulation and sheath materials are commonly made from oil-derived polymers, meaning oil price increases can affect manufacturing costs and supply.
Copper is highly recyclable and can be reused repeatedly, making it an important material for recycling and sustainability initiatives.
Copper pricing is being influenced by growing global demand, supply pressures, exchange rates and broader geopolitical conditions.
For electrical contractors and wholesalers, rising copper and oil prices can affect cable costs, product availability and project planning.
With increasing demand from renewable energy, EV infrastructure and data centres, copper is expected to remain one of the electrical industry’s most valuable and heavily utilised materials.
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