Copper Price: What Effect On Cable Will The New Year Bring?
Copper Price: What Effect On Cable Will The New Year Bring?
Copper Price: What Effect On Cable Will The New Year Bring?
What effect on cable will the new year bring? Winter 2006 Issue 1
While the price of copper has been in price, the cost of the cable will increase
threatening to spike for the last 5 by 65%. More complicated cables with
years, with rumours of shortages multiple cores or pairs, screens, braids or a COPPER FLUCTUATION - 2006
and the increase in demand from special insulation or jacket material are less
the emerging markets, it is in these affected by copper fluctuations. £4,500
last 12 months that we have
Reasons for this unprecedented price
witnessed an unprecedented surge in
rise can be attributed to the emergence
growth. Copper peaked in May this of the Asian markets, and their vast
year when it rose to over £4,500/ton. demand for both natural resources and
The price of copper has been driven cable. The construction boom in this
higher by numerous factors including region has increased the amount of copper £3,500
growth in demand, limited stocks and used in everything from buildings to
labour issues by some of the worlds electrical equipment.
largest producers.
The recent 25-day strike and resulting
This clearly has a significant effect on the production losses at the Escondida mine in
cable industry. Some cables are less Chile has also affected price. It costs £2,500
affected than others, however simple cables approximately $2/kg to extract the raw
such as panel wiring, twin and earth, flexs metal from the earth, with further refining Jan Mar May July Sept Nov
and armoureds have relatively high copper costs and drawing costs being added
content compared to the time and to the price. Recently there has been
processes involved in manufacturing them. considerable unrest within the mining the US and Europe as production moves to cable as and when you need it, and leave
workforce who want their earnings related the Far East. the speculating to the London Futures
to the world copper price, resulting in large Exchange. If you have a medium or large
production losses. Analysts are also suggesting that as copper short-term need, it may be worth buying it in
prices have risen consumers are starting to one go - fixing your cost and making the
A closer look at the statistics makes for substitute other materials in its place or most of any quantity discounts on offer.
more encouraging reading. Although become more efficient in their consumption.
consumption of copper has outstripped The real irony is that for years copper We want to help where we can, and be as
supply for the last three years, last year has been mined bountifully, due to its low 'flexible' as possible! We are happy to
the gap narrowed considerably. Research by price and plentiful supply. This made discuss a fixed pricing agreement with you,
the International Copper Study Group looking for substitutes uneconomic, but where cable ordered can be called off over
indicates that next year, based on a this is starting to change. Some cable a pre-agreed period of time. This means you
number of factors, supply may begin to producers are already supplying copper don't have the problems of storage but do
exceed demand, allowing a small surplus coated aluminium (CCA) with or without benefit from consistent prices. Please call us
Let's take the example of a 6491X PVC to build up. the customer's knowledge! In addition, for a chat about these possibilities.
Conduit Wire. Depending on size, this may plumbing applications are now increasingly
have a cost make up of 65% copper, 5% It is important to see the longer term picture moving towards plastic.
PVC and 30% to cover production, in the copper markets, and take into
packaging, distribution and profit. Assuming account that the growing demand in It is unclear which way the market will turn
of course that all other elements remain the emerging markets such as India and China in 2007. There are certainly arguments on
same, it is easy to see that if copper doubles has been offset by the decline in demand in either side. The advice from FS Cables - buy
- New Fire Safety Legislation
+++ Metal Prices +++ Metal Prices +++ Metal Prices +++
31st November 31st August 3 Month Change %
COPPER £3,544.56 £4,007.76 - 11.56
ALUMINIUM £1,372.14 £1,276.86 + 7.46
SILVER £7.43 £6.54 + 13.61
NICKEL £17,733 £16,484.96 + 7.57
All prices per 1000kg except silver per oz. Exchange rates apply at time of trade
+++ Metal Prices +++ Metal Prices +++ Metal Prices +++
In Brief Reigniting an old flame
Investors
New fire safety laws came into force on
the 1st October this year, and early The RRFSO reforms 30 year old fire safe
indications suggest that a number of
in people employers are still unaware of the
implications. The Regulatory Reform
We are delighted to announce that (Fire Safety) Order (RRFSO) sets out
FS Cables has been officially recognised as a change in legislation applying to
an Investor in People. It took around a year all non-domestic buildings and
to achieve this prestigious accolade and emphasises a shift in responsibility
involved the efforts of all members of the onto the employer. This means that
company. The net results so far have been business owners will now need to be
very positive, with effects on increased more aware of the mechanics of fire
customer satisfaction, improved staff safety engineering.
motivation, and reduced wastage and costs.
The reform aims to improve public safety by
This is a great achievement for the focusing on fire prevention, therefore taking
company, but we are fully committed to a more pro-active than reactive approach to
continually improving the processes and fire safety.
skills that gained us the Investors in People
recognition in the long term. The implications for the cabling industry are
hugely significant. The reform brings to light
We have a commitment to training the need for effective fire safety systems and
and development within FS Cables, the need for fire alarm and detection
recognising the benefits of people equipment that conform to the necessary
performance to the future of our company. requirements. Clearly, there becomes a
very definite need for appropriate fire
performance cabling to be installed.
The impact of the reforms needs to be
General Sales: 01727 828 828 OEM Sales: 01727 744 066
Fax: 01727 824 825 Contractor Sales: 01727 744 077
www.fscables.com Credit Control: 01727 744 063
[email protected] Purchasing: 01727 744 055
Marketing: 01727 744 056