Copper Price Breaks Through 90,000 Yuan, Putting Pressure on Power Transmission and Distribution Industry

Industry News

On December 4, 2025, copper prices historically broke through the 90,000 yuan per ton mark. Concerns over U.S. tariffs have led to a continuous inflow of substantial volumes of refined copper into COMEX, whose inventory now accounts for 60% of the global total, tightening the supply of readily available material in the market. Supply-side anxieties, outweighing actual demand, continue to drive prices higher. JPMorgan Chase predicts that copper prices could surge to $12,500 per ton in the first half of 2026.

The power transmission and distribution equipment sector is facing a severe cost test: copper constitutes 20%-40% of the total cost of a transformer, and exceeds 90% for core components such as electromagnetic wire. In high-voltage switchgear, copper busbars account for 20%-40% of the cost, exceeding 40% for high-current cabinet types. Following the breach of the 90,000 yuan mark, the cost of a single 10kV transformer has increased by 30,000 to 50,000 yuan, while the cost per kilometer of cable has risen by 80,000 yuan. A leading company estimates that for every 10% fluctuation in copper prices, the cost of its transformer business changes by nearly 500 million yuan.

The industry is currently facing a widespread "loss-on-order" dilemma. Some companies are extending delivery cycles, and power grid project investment budgets are also under pressure. Although enterprises are attempting to mitigate the impact through measures like centralized procurement and material substitution, the cost transmission mechanism remains fragile.