Copper Wire Prices Rebound: Vietnam’s Automotive Boom and China’s Export Surge Influence Market

The global Copper Wire market in the first half of July reflects diverse regional dynamics. Vietnam’s robust automotive and manufacturing sectors are driving up Copper Wire demand, while China’s export surge and steady domestic demand contribute to price increases. In the USA, rising Copper Wire prices are influenced by global freight rate hikes and significant infrastructure investments.

Vietnam's Copper Wire market is experiencing a significant uptick, driven by strong growth in the automotive and manufacturing sectors. According to the Vietnam Automobile Manufacturers Association (VAMA), automobile sales surged by 11.7% year-over-year, with a notable 3% increase observed in June compared to May. This rise in automotive sales reflects an increased demand for Copper Wire, which is crucial for vehicle production. The Vietnamese manufacturing sector is also witnessing notable improvements. The Manufacturing Purchasing Managers' Index (PMI) surged in June, marking the third consecutive month of growth. This sharp increase in PMI signals a strengthening of business conditions and a robust expansion in manufacturing activities. Alongside, Vietnam's Consumer Price Index (CPI) saw a marginal increase in June, indicating a stable economic environment. The construction sector in Vietnam is thriving, contributing further to the heightened demand for Copper Wire. Growth in the real estate market and a significant rise in urbanization are driving up the need for construction materials, including Copper Wire. The optimism surrounding potential U.S. interest rate cuts has also impacted copper prices positively, with a modest increase noted in early July.

China, a major global player in the copper market, has seen a notable increase in its Copper Wire and cable exports. Customs data reveals a surge in exports, which is helping to ease domestic copper stockpiles. The rise in exports is complemented by strong domestic manufacturing use of copper. Automotive sales in China grew by 5.5% in June compared to May, reflecting a robust demand for Copper Wire as part of the automotive production process. The continued rise in Copper Wire prices can be attributed to both strong export activities and increased consumption within the manufacturing sector.

In the United States, the price of Copper Wire has risen significantly in the first half of July, reflecting a widening gap between supply and demand. The increase in global long-term ocean freight rates by an average of 4% over the past three months has directly contributed to higher Copper Wire prices. Spot rates are surging due to higher demand and capacity constraints on major ocean trades. Carriers have implemented several General Rate Increases (GRIs) and Peak Season Surcharges (PSS) for June and July, which have further pressured prices upward. Additionally, The U.S. construction sector is also seeing substantial developments, which are expected to boost Copper Wire demand. For example, Hoffmann Green Cement Technologies has secured a 30-year licensing agreement in the U.S. for clinker-free cements aimed at decarbonizing the construction sector. Additionally, President Biden has allocated $11 billion for the construction of a tunnel across the Hudson River, marking one of the largest infrastructure projects in the U.S. These significant investments in infrastructure are anticipated to drive up the demand for Copper Wire.