Copper Prices Reach All-Time High, But Sales Gains for Cable Makers Are Not Guaranteed

Copper prices have hit an all-time high of $14,800 per ton on the London Metal Exchange, driven by supply concerns and rising demand from AI data centers and power-grid investment.

This surge in copper prices is expected to boost sales for cable makers, which rely heavily on copper as a core raw material. LS Cable & System, for example, saw its consolidated sales grow from 6.77 trillion won ($5.06 billion) in 2024 to 7.59 trillion won last year, largely due to rising copper prices and growing demand for power cables and wiring from AI data centers.

However, the benefits of higher copper prices will vary widely by company depending on their ability to pass rising raw-material costs on to customers, as well as exchange rates and supply conditions. An industry official noted that while escalation clauses allow companies to reflect higher copper prices in their selling prices when costs rise between contract and order time, 'that doesn't mean operating profit actually improves.'

A significant gap is expected between large cable makers with heavy overseas exposure and those focused on the domestic market. Domestic-focused and small and medium-sized cable makers may struggle to immediately reflect higher costs in their contract prices due to financial constraints facing major domestic clients.