PRICE TRENDS AND IMPACT ON CABLE MARKETS

 

Material Prices and Volatility Increase

Trends in raw material prices have always been a major concern for cable-makers. Over the last couple of years not only have prices been rising but the volatility in the price of some key materials, especially copper, has increased. The price volatility has been exceptionally high during the current year. The material with the greatest impact on cable production is copper, but big price rises have been experienced in other metals and in other ­­cable-­making materials, including polymers that are strongly influenced by the price of oil.

 

Cable-Makers Margins Squeezed

Increased material prices have been reflected in higher average sales values reported by cable manufacturers over 2005 and 2006. Elements of higher material costs have been passed on by cable-makers in higher selling prices, but manufacturers are usually unable to pass on all cost increases to their customers. Not only do higher material prices squeeze the operating margins of cable producers, but they also face much higher working capital requirements and in some cases are exposed to greater risks created by the high volatility of material prices.

 

 

TRENDS IN COPPER

TRENDS IN ALUMINIUM

POLYMERS

 

OTHER MATERIALS

 

HOW TO ADJUST CABLE SELLING PRICES

 

PRICE VOLATILITY

 

MATERIAL SUBSTITUTION

 

CONCLUSION