Copper Surge Fuels Record Revenue for Cable Makers

Copper prices have been rising steadily in recent months, driven by strong demand from artificial intelligence (AI) data centers and expanded power infrastructure investment. According to the London Metal Exchange (LME), the copper 3M price stood at $14,103.50 per ton as of the previous day, the highest level since May 13 this year.

This surge in copper prices is having a positive impact on cable makers, who directly benefit from strong copper prices due to their use of copper as a key raw material. Their selling prices are often linked to copper prices, leading to increased revenue when copper prices rise.

LS Eco Energy, for example, achieved its largest-ever quarterly revenue in the second quarter of this year, driven by rising copper prices and expanded material sales. The firm forecast stable growth would continue in the second half, centered on materials and busducts.

Analysts expect earnings improvements to continue at major cable makers such as LS Cable & System and Taihan Cable & Solution, with Meritz Securities forecasting record-high quarterly earnings for LS Cable & System, boosted by price increases from rising copper prices and expanded busduct sales to U.S. data centers.