Copper will Drive Continued Volatility in the Electrical Supply Chain
While the latter half of 2022 saw stabilization of volatile pricing on switchgear, wire, and other key electrical components, 2023 could see upward pricing pressure on the electrical supplies market as a whole.
Despite another dose of anti-inflation fiscal policy being implemented at the end of 2022, the electrical supplies market experienced an unexpected increase in price in Q4, rising by as much as 11% for certain parts and equipment. This jump came on the heels of a similar increase in the price of copper.
As we look ahead at 2023, Raiven, a leading digital group purchasing platform, using market data and insights from their network of contractors, suppliers, and manufacturers, anticipates these trends to continue into and beyond the first quarter of 2023 as supply shocks and spikes in demand continue to drive the price of copper upward.
Below are a few highlights from the Q1 2023 Electrical Supply Chain Outlook. The full report is available for free download here.
Q4 2022 - Trends and Developments
- Decrease in copper supply with corresponding decreases in all electrical supplies
- Price spikes on certain electrical supply categories
- Increased lead times on electrical components
Q1 2023 - Expectations and Insights
- Economic recovery for China placing upward pricing pressure on raw materials, especially copper and aluminum.
- Codelco, one of Chile’s largest copper mines is decreasing its overall production while simultaneously seeking 33-80% price increases for contract deliveries to China and Europe
- The LME copper stock warehouse has reached its lowest supply levels in 5 years and a 60% decrease from its highest stock levels in 2022.
How will these and other pricing trends effect contractors buying electrical supplies? How will this impact consumers wanting electrical projects completed? Read Raiven’s full report here to find out.
