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【Popular Science】Copper Prices Break The '100,000' Mark; How Will The Connector Industry Find A Breakthrough?
- Categories:News
- Author:Shenzhen Deke Electric Co., Ltd.
- Origin:https://www.de-ke.cn/
- Time of issue:2026-05-19 16:47
- Views:
【Popular Science】Copper Prices Break The '100,000' Mark; How Will The Connector Industry Find A Breakthrough?
- Categories:News
- Author:Shenzhen Deke Electric Co., Ltd.
- Origin:https://www.de-ke.cn/
- Time of issue:2026-05-19 16:47
- Views:
In early 2026,when the price of Shanghai copper futures firmly surpassed 100,000 yuan per ton,professionals in the connector industry realized that the era of high copper prices,once driven by short-term supply and demand imbalances ,had quietly evolved into a survival challenge under the’new normal’.
As a core essential raw material for the global energy transition and AI computing infrastructure,copper is known as the’industrial rice’and possesses strategic value comparable to ‘new oil’.Its strategic importance has become a market-wide consensus.For connector manufacturers in the midstream,finding ways to maintain cost baselines while not sacrificing performace advantages amidst the high volatility of copper prices has become an ultimate survival-driven technological challenge.
1.Review of the copper price trend in 2025
The trend of copper prices in 2025 can be described as a ‘structural rupture.’ In terms of price movement,international copper prices exhibit the characteristics of ‘high-level fluctuations and an upward shift in the central axis,’with a year-on-year increase of nearly 30%.Particularly in the second half of the year,with frequent events such as disruption in mine supply,mining accidents in indonesia,and the U.S.’s proposed tariffs on imported copper,copper concentrate processing fees even fell into negative territory at one point,signaling that the industry had officially entered an extreme tightening cycle.This tight balance is not only due to insufficient output on the mining end but also stems from a reshaping of AI data centers and the silver era of grid expansion and charging networks have formed a powerful ‘dual engine of copper consumption.’ Against this backdrop,copper is no longer simply a cyclical commodity;its strategic attribute and resource nature are being reevaluated by the market,and ‘substitution’ and ‘conservation’ have become inevitable choices for downstream industries.
2.How the Surge in Copper Prices Affects Costs
In recent years,the global economy has become increasingly dependent on copper,which means that the growth in copper demand has significantly outpaced the growth of the global economy,further suggesting that a new price cycle is brewing.High copper prices directly erode the profit margins of the connector industry,delivering a ‘double-edged’ impact to connector manufacturers.The first is explicit costs:copper typically accounts for more than 30% of the cost of connector teminals,and for high-voltage current connectors,this proportion is even higher.In periods of sustained high prices,material cost pressure is significantly amplified,especially in products with concentrated copper usage ,such as terminals,harnesses,and high-speed connectors,where cost elasticity is noticeably compressed.The deeper aspect lies in implicit costs,namaly supply chain security.As copper prices rise,the risk of ‘substituting inferior materials for superior ones’ or supply chain disruptions increases.Furthermore,due to fluctuations in the global logistics supply chain,the uncertainty of raw material delivery cycles has significantly increased.To ensure production continuity,companies have to increase safety stock,which further occupies their own cash flow and intensifies financial turnover pressure.
3.How Can Connector Companies Break the Deadlock?
Facing the normalized high prices of copper,the industry’s response has shifted from ‘short-term digestion’ to ‘systematic restructuring.’
- Material substitution:Scenario-based ‘copper reduction,’with aluminum replacing copper moving from an alternative option to a mainstream path.In the connector field,aluminum replacing copper has already become one of the most practical cost-reduction directions.For example,TE Connectivity, in collaboration with industry chain partners such as Baowei Alloy,has tackled the problems of aluminum ‘creep’ and ‘electrochemical corrosion'through the 'Aluminum innovation win-Win Ecosystem.’
- Systematic cost reduction:In addition to material substitution,leading companies are starting to enter from the ‘thermal energy’ perspective.TE’s concept of ‘Temperature Rise Economics’ involves optimizing the heat dissipation design of connectors and harnesses,allowing the same current to pass through a smaller cross-sectional area,thereby directly reducing the use of copper.
- Supply chain coordination:Leading companies stabilize raw material supply through long-term price agreements or joint ventures with upstream and downsteam partners,or reduce intermediate losses through vertical integration to produce core components in-house;they introduce automated production and digital management optimization;they break reliance on single suppliers and build a ‘domestic and overseas’ dual supply chain,further hedging against cost pressures.
4.DEKE Electric's Diversified Material Strategy and Stable Supply Chain Control
As a high-tech industry focused on the research, development, and production of connectors, DEKE ELECTRIC accurately grasps industry trends and establishes a dual moat of 'diverse materials and technical depth.'
1. Multi-material strategy: In the traditional copper alloy field, Deke does not merely apply standard products but selects materials precisely according to application scenarios. Phosphor bronze, thanks to its high elastic modulus and resistance to stress relaxation, is widely used in high-reliability terminals that require long-term stable contact force; Brass, with its excellent corrosion resistance and machinability, has become the main material for automotive and industrial connector housings and terminals; The Introduction Of Copper-Steel Composite Materials effectively reduces material costs while ensuring basic electrical conductivity and mechanical performance, alleviating the pressure on customers caused by high-priced copper. This 'materials-by-application' strategy achieves refined control over material costs while ensuring performance.
2. Stable supply chain control: Deke has established long-term strategic partnerships with multiple copper and alloy material manufacturers, building a diversified supply matrix to effectively hedge against price fluctuations and temporary supply shortages, ensuring a continuously stable and controllable raw material supply. Additionally, the company owns a 15,000㎡ South China warehousing center, stocking over 1,000 items with a storage capacity of 2 million K, providing 24-hour delivery in the Pearl River Delta region to ensure timely delivery, while large-scale inventory also helps reduce procurement costs.
The connector industry in 2026 is destined to be a ‘dance on the edge of a knife.’ The gentle decline in copper prices may still be far off, but technological innovation has never stopped.In an industry where global raw material prices continue to fluctuate,the core competitive edge of even machine companies is no longer limited to cost control capabilities; it also lies in whether they can build a diversified ,iterative,and sustainable system for material adaptation and process optimization.Against the backdrop of these copper price fluctuations,what DEKE ELECTRIC can do is maintain consistent quality amidst change and respond to every trust with reliable connection solutions.
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