The copper market has become increasingly popular throughout the years. Copper is used in several products including electric generators, computers, lighting, motors, etc. From wires in appliances to jewelry, copper is used all around us. However, in the Post-COVID world we live in today, is copper easier or harder to find? We asked one of our State Electric Specialists, Chase Day, some important questions regarding copper. Chase currently serves as State Electric’s Commodity Specialist in our Raleigh, NC location. Chase has his Master of Business Administration in Leadership with 11 years of experience in the financial industry.
Strengths and Weaknesses with Today’s Copper Market
One of copper’s best strengths is demand. Today, copper demand is receiving tremendous support from the renewable energy, electric vehicle, electronic, and energy efficiency markets. Mining fossil fuels, residential housing, commercial construction, and industrial markets support it as well. As the global economy expands and transitions, an efficient conductor such as copper should continue to be supported.
The copper market also has weaknesses. Global supply, inflation, rising U.S. interest rates, and slower economic growth in 2022 and 2023 have impacted the copper market. Cheaper substitutes, like aluminum, curb the appetite for copper as well. Supply chain disruptions have had adverse effects on copper too. Factors such as miner strikes, freight costs, and labor limitations support those disruptions.
Copper Market Changes & COVID
Has the copper market changed in the past 5 years and has COVID affected the copper market? Chase answers yes to both. The copper market has become more volatile in the past 5 years due to its high demand and the challenges it must overcome to support such demand.
The covid pandemic further complicated copper’s outlook. Responses, such as lockdowns, fueled copper’s weaknesses and helped drive prices to an all-time high in March of 2022. Countries with higher populations implemented longer lockdowns. Longer lockdowns have delayed copper production, as well as importing and exporting.
State Electric Positions for Success
Our success is derived from a multitude of areas. I believe dedication to service, communication, and partnerships are some of the most crucial. Keeping service in the front of our teams’ mind allows us to develop long-standing partnerships across our geographical footprint. It also helps us develop a competitive strategy to turn inventory, price competitively, and consistently meet customer expectations.
As we continue to battle the changing horizon, it’s our priority to position ourselves as a leader in commodity distribution. As a leader, it’s our responsibility to ensure that our supply and partnerships with manufacturers are strong so we can continue to honor our motto “Service Makes State”.