Cost of Copper Vs. Cost of Wire

Most copper is used to make wire and cable.

Electric wire is often made of pure copper. Changing prices in the copper market can potentially affect the cost of wiring for your electronic systems and may lead you to choose an alternative type of wire.

Copper Pricing Trends

As of February 2011, copper prices have been rising steadily for two years, since hitting a low in December 2008. Since then, copper prices have risen approximately 200 percent.

Copper Wire Demands

The main use for newly mined copper is to produce copper wire and cable products that are used for a wide variety of commercial and residential purposes. Nearly 60 percent of the demand for copper in the United States stems from the need for electrically conductive materials, mostly wire. Copper wire prices tend to rise when copper prices rise. In the month of September 2010, the retail price of copper wire went up 13 percent in some regions of the world as a direct result of increases in the cost of copper.

Offsetting Higher Prices

There is an easy way to offset the rising price of copper wire. By purchasing wire a size larger than standard electrical regulations call for, you can increase the energy efficiency of your system. Over time, lower energy costs more than pay for rising wire prices.

References

• Investinmetal: Copper Prices
• Each IC: Market Prices Soared 13%, Copper WIre
• Copper.org: One Wire Size Up Means Big Saving