In recent years, domestic copper rod and wire producers have continuously upgraded their technology and expanded their capacity, effectively enhancing the quality and competitiveness of their products. According to data from the General Administration of Customs in recent years, the export volume of refined copper wire with a maximum cross-sectional dimension of >6mm (HS code 74081100) has shown an increasing trend year by year. Since the outbreak of COVID-19 at the end of 2019, the global economy has been severely impacted, trade activities have decreased, and the export of metal products such as copper rods has been significantly affected. However, with the effective control of the pandemic and the recovery of the global economy, a favorable market environment has been created for copper rod exports. In H1 2024, the export volume of refined copper wire with a maximum cross-sectional dimension of >6mm reached 31,373.5 mt, up 49.8% YoY, demonstrating strong growth momentum.
According to customs data on export destinations, the Philippines and Thailand have consistently ranked among the top two destinations for China's copper rod and wire exports since 2021, indicating a high dependence on Chinese copper rod and wire products in these countries. Meanwhile, the export volume to Singapore, Brazil, and Pakistan has also seen significant growth, with YoY growth rates of 65.5%, 98.7%, and 71%, respectively, further expanding the export market for Chinese copper rod and wire. Additionally, it is noteworthy that in 2024, the export volume of copper rod and wire to Saudi Arabia surged, rising to the third position. It is understood that this year, the Saudi government has placed emphasis on developing non-oil industries and launched a series of large-scale infrastructure projects. With the advancement of Saudi Arabia's "Vision 2030," the demand for copper rod and wire in new energy projects and industrial modernization will continue to increase.
The demand for copper rod products in overseas markets, especially in Southeast Asia, continues to grow. This is mainly due to the accelerated infrastructure construction and rapid development of manufacturing in the region. Domestic copper rod producers are seizing this opportunity to increase their export efforts and actively explore overseas markets. At the same time, some companies are further consolidating and expanding their market share by establishing production bases or sales networks in Southeast Asia.
However, the copper rod and wire export market also faces some challenges. On one hand, the significant fluctuations in international copper prices bring certain exchange rate risks and cost pressures to export enterprises. On the other hand, overseas markets are increasingly demanding higher product quality and environmental protection standards, requiring domestic companies to continuously improve their technological level and product quality. Despite these challenges, with the deepening implementation of the "Belt and Road" initiative, China's copper rod and wire export market remains full of opportunities.
In summary, the Philippines and Thailand have been the largest importers of Chinese copper rod and wire in recent years, while emerging markets also show great potential. Additionally, SMM will launch the "8mm Copper Rod Export Processing Fee (FOB)" in August and will continue to monitor relevant news on copper rod and wire exports.
