Copper Cost Surge Challenges Power Cable Industry

In late September 2025, a major mudslide halted operations at Indonesia’s Grasberg copper mine — one of the world’s largest. The accident has disrupted global copper supply and pushed prices sharply higher. For China’s cable industry, which consumes more than half of the world’s copper, this has triggered a new round of cost pressure.

Copper is the key conductor for power, control, and communication cables. As copper prices rise, cable producers face squeezed profit margins and greater uncertainty in contract pricing. Many factories have already started adjusting quotations, while others explore cost-sharing mechanisms with clients or shift partially to aluminum conductors.

However, market fundamentals remain positive. The demand for cables in the international market continues to expand, to manage this new environment, forward-looking cable makers are taking strategic steps:

1. 1. Hedging and advance procurement of copper/aluminum to lock in prices.
2. 2. Diversifying supply sources for raw materials, seeking alternate mines and recyclable copper.
3. 3. Product optimization: using optimized conductor designs or hybrid materials to reduce metal usage without sacrificing performance.
4. 4. Greater cost transparency in contracts, with clauses for material surcharges tied to raw metal indices.
5. 5. Focus on high-value, specialty cables (medium voltage, high voltage, fiber-optic, smart cables) that can better absorb cost pressures.

In the near term, the cable industry faces challenges: margin compression, pricing volatility, and supply bottlenecks. But in the medium to long term, structural demand remains robust. Companies that manage their supply chain well, maintain strong relationships with clients, and invest in efficiency and innovation are likely to thrive.

The recent copper supply shock is a warning — but also an opportunity for quality, reliable cable manufacturers to differentiate themselves. Those that can navigate through this turbulent period will be well-positioned when commodity cycles stabilize again.