4 major factors that impact the price of copper

This article originally appeared in a “Movie Monday” LinkedIn newsletter by Spencer Knott.

This week’s blog brings our newest installment of the series, “Elevator Pitches“, this time featuring my Trident cohort Tyler Cheadle.

For the uninitiated, here’s a quick recap of how this series works:

A Trident sales rep and I go for an elevator ride
As the elevator doors close, I assign them a Trident product
They have until the doors reopen to pitch me the product

While there are multiple reasons that make copper clad steel a superior option to solid copper, Tyler hit on perhaps the most important: price stability.

I have always known that copper was expensive, and the price constantly changing. But if I’m being honest, I never really took time to understand why its so volatile. I’ve just always taken it as a fact of life, like music records – I know they play music, but I don’t have a clue how.

So this week I decided to do a little cram session and learn about the factors that keep the price of copper in constant flux.

1. There is MASSIVE demand (and its only rising)

A global economic survey warns copper demand could soon exceed supply as AI data center, energy, and infrastructure buildouts strain resource levels — another factor driving prices up.

Copper is everywhere, used heavily in industries like power and telecom infrastructure, construction, renewable energy, electronics — you know, it may almost be quicker to list what its not in!

When construction slows, copper price drops. But when new industries like EVs, solar, or infrastructure spending spikes, copper surges.

In the last 6 months alone, copper has risen 30%, from $4.44 USD to $5.80.

2. Supply is slow and constrained

Detailed market research highlights that copper supply expansion lags demand growth significantly, and new mines can’t be brought online quickly — a structural supply issue.

Copper is a finite resource, a it faces a bevy of growth constraints: new mines can take as long as 15–20 years to permit and build, many high-grade deposits are already tapped, mining is energy-intensive and labor-intensive — the list goes on!

So when demand jumps, supply doesn’t keep pace, and prices spike.

3. Geopolitics & trade distortions

Trade shocks and supply bottlenecks have caused copper prices to reach record highs, showing how policy shifts and international trade dynamics impact pricing.

A large share of the world’s copper comes from the countries Chile, Peru, China, and the Democratic Republic of the Congo.

That means constant external threats like labor strikes, political instability, export restrictions, and energy shortages are always present — and they all can dramatically move prices overnight.

Copper trades on global commodity markets like the London Metal Exchange, so any disruption anywhere gets priced in everywhere.

Side note/fun fact: the The Bingham Canyon Mine, located near Salt Lake City, Utah, is the largest open-pit mine in the world.

The massive human-made excavation is historically one of the most productive copper mines globally, extracting copper, gold, molybdenum, and silver for over a century.

4. Financial speculation adds volatility

Research on copper price volatility shows that the metal’s price is sensitive to global macroeconomic, demand, and future expectations, which can lead to sharp swings.

Copper isn’t just bought by manufacturers. Its traded by edge funds, commodity traders, and investors hedging inflation.

That means that price swings aren’t always tied to real-world usage. Sometimes copper moves due to human reactions to to things such as fear of the rise of inflation, the dollar weakening, or market panic and overcorrection.

Why Copper Clad Steel is Price Stable

Solid copper wire is fully exposed to the swings of the global copper market. When prices spike, material costs rise immediately, budgets get stretched, and long-term projects become harder to forecast. There’s no insulation from volatility when your product is 100% tied to a commodity that reacts to global demand, financial markets, and economic uncertainty.

Copper-clad steel tracer wire reduces that exposure while delivering the same locate performance. Because electrical signal travels along the outer surface of a conductor, known as the “skin effect”, the copper cladding carries the signal while the steel core provides superior strength and cost stability.

By using significantly less copper and relying on a more stable steel core, CCS is less sensitive to price swings and delivers more predictable, year-over-year pricing without sacrificing signal strength. Additionally, CCS is significantly stronger than solid copper while weighing less and costing much less.

And Tyler also highligted a bonus benefit: the reduction of copper in CCS tracer wire makes it a non-target for thieves as it has ZERO scrap value.