Updated 4/19:
- Copper is up again on Monday, 4/19 over $4.25/lb
- Mills have announced another 2.5% multiplier increase, now in effect
- Copper demand remains high, but lower in supply
Copper closed up almost $.08 on Wednesday, 4/14 resulting in the copper the mills led mills to announce a 2.5% multiplier increase which took immediate effect. With copper up significantly again today, 4/15, we expect to see another increase announcement today or tomorrow, 4/16. Please call your Merfish United representative for more information or to place orders. You can see our list price sheet dated 2/24 here.
What’s Driving Copper Increases?
Yesterday, Goldman Sachs released a report entitled “Copper is the New Oil.” It observes that copper will fulfill increased demand for renewable energies as a critical conductive component. With significant infrastructure legislation from the US government on the horizon, which includes ambitious green energy initiatives, this creates an even more bullish copper market in an already tight supply situation.
With copper mining production lagging from years of underinvestment, including prospecting for and starting new operations, the current output is behind demand and causing prices to rise (in addition to Covid-19 setbacks in top copper producers like Chile). Competition with China, which is the biggest consumer in the world of copper, is another ongoing supply concern. Since this time last year, China’s copper imports are up 25%, with their manufacturing expanding faster than expected as construction season heats up.
We will be watching copper inventory and demand levels as the global response to new Covid-19 cases continue and how the world recovery progresses. These will play an important role in pricing, but for now, demand is exceeding supply, and we can expect pricing to stay at higher levels.
As a reminder, last year at this time copper was $2.25/lb and was peaking at $4.33/lb last February. Currently, it is selling at $4.19/lb. The Goldman Sachs paper mentioned earlier has analysts predicting a 900% demand by 2030.
How We Can Help:
As copper tube mills continue to build inventory while fulfilling orders, you can rely on us to be deeply stocked across the country because of our long-term relationships with mills. We’re able to help you manage your inventory in low-volume scenarios like this.
Our business model was made for times like these and enables wholesalers to buy a broad array of pipe products from one supplier at low minimums for FFA. With us, buy what you need, when you need it. You can mix-and-match Copper Tube with Steel Pipe, PVC Pipe, Conduit, Strut & Rod to make our low weight minimums on your next weekly order.
Other Market Updates:
As the Covid-19 recovery continues to gain momentum across the country, strong global demand but limited supply of commodity products are causing prices to rise. These include pipe products like Copper, Steel, PVC pipe, electrical conduit and related products. Read our April market update for more information.
More Info:
- A Mid-April Commodities Market Update, 4/14
- Copper Increase and New List Price Sheet, 2/24
- List Price Sheets
- Our Pipe Products
- Our Services