Impact of copper prices on demand for copper products

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With the copper price currently at very high levels, its impact on demand for copper products is an open issue. Cu2 Consulting asked the copper industry directly.


In January 2021, Cu2 Consulting launched a new service to monitor market confidence of the copper industry over time.


The new monthly service is a Copper Industry Barometer called Cu2Baro. Besides monitoring market sentiment, the Cu2Baro also polls our industry panel (*) on “hot topics”. One of the latest hot topics relates to the impact of high copper prices on copper products demand.


The graph below is taken from the April Cu2Baro survey and provides interesting insights.


Panel members pointed to an impact of the current level of copper price on demand for copper products in the Building industry and, rather surprisingly, in Coinage, with a possible extension to HVACR in the future. Ordnance is the least-impacted application, followed by Electronics and Automotive.


A copper fabricator pointed out that there is still no impact, but “the momentum could grow” if copper price remains at such high levels for long.


Another copper fabricator expressed concern that, in the long term, HVACR customers might consider switching from copper to aluminium.


 (*) The panel of the Cu2Baro survey includes 55 members in 22 countries in Europe, the Americas, and Asia, mainly representing copper fabricators, but also including distributors of copper products, large OEMs, raw material traders, copper producers, and suppliers of equipment to the copper industry. The copper fabricators in the panel account for nearly 30% of the world total output of brass mill products.


Cu2 Consulting is a consultancy firm with the copper fabricating industry as its core business. The company has deep experience in the copper industry, accrued over several decades.
Cu2 Consulting serves the copper industry across the whole supply chain, with a particular focus on the fabrication side. We serve companies in Europe, North and South America, and Asia.
Cu2 Consulting offers both multi-client services and tailored strategic and business consultancy.
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