Understanding Cable Prices

Copper Image Image from Stock.Xchng

In the wire and cable industry, it can be difficult to understand what a good price is when they seem to be constantly changing for any given cable.  Everyone knows that the price of raw copper is a huge indicator of wire and cable prices, but there isn’t always a clear correlation.

Copper prices change.  This is a fact of all commodity products just like corn or wheat.  However, what many people don’t think about is that this is copper in its raw form.  Any product in its raw or natural form will not have the same price variance as the end product.  One of the contributing factors to this uneven correlation is simply the lapse of time between procurement and the delivery of the finished product.  If the cost of raw copper changes today, that is the price that the manufacturer buys it at.   Then the production process needs to take place, which is a minimum of 5-6 weeks.  The import to the United States alone can take an additional 2-8 weeks depending on the transportation method.  Now consider that the wire that you may be buying today is priced according to raw copper when it was first bought, a minimum of 2 months ago.  In order for the end buyer to see a drop in price, they would have to wait at least 2-4 months and typically longer.  In this time, the price can drastically drop, double, and return to its original rate. This is why prices of wire and cable overall remain fairly steady and do not fluctuate on a daily basis.

The Mueller Group is committed to offering its customers competitive prices for all products.  We will work with you to ensure that the cable we are selling is the appropriate product for your application and budget.


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