Trump's Tariff Sentiment Fluctuates: How Are Copper Busbar Companies Affected? [SMM Analysis]

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       Starting from the end of 2024, the Trump tariff policy, like a sword hanging over the market, has caused fluctuating sentiment, impacting copper prices and the overall market. Against this backdrop, how are copper busbar enterprises faring? To address this, SMM has engaged in discussions with copper busbar enterprises across various regions, and the findings are summarized as follows:

       According to feedback from enterprises, the direct impact of the Trump tariff policy at this stage is not significant. However, downstream market sentiment for procurement has been dampened by high copper prices. Before the Chinese New Year, the market generally held a pessimistic outlook for the future. Yet, after the holiday, copper prices continued to fluctuate at highs. This trend has reduced downstream enterprises' purchase willingness and suppressed market demand. Some copper busbar enterprises reported that recent order volumes have shown mediocre performance, with significant market pressure.

       From a cost perspective, copper busbar production is highly dependent on copper raw materials. Although copper busbar processing fees across regions have not shown significant changes compared to 2024, the continuous rise in copper prices has directly driven up the market price of copper busbars. This has undoubtedly increased the procurement costs for downstream enterprises, prompting them to actively seek substitutes. Copper-aluminum composite busbars, with their superior performance and cost-effectiveness, have become a popular choice. According to some copper-aluminum composite busbar enterprises, their overall order volume this year is expected to achieve a 20% increase YoY. In contrast, traditional copper busbar enterprises, while expecting order volumes to remain stable at normal levels, still face numerous uncertainties amid market changes and competitive pressures.

       Looking ahead to the electric heating application field, copper busbars, due to their high thermal conductivity, are widely used as heating elements in various industrial and commercial heating equipment. With the improvement of living standards, heating demand is gradually shifting from basic warmth to comfort, convenience, and personalization. Electric heating products, with their flexible heating methods and ability to meet the needs of different scenarios and groups, are highly favored. For instance, small electric heaters are suitable for localized heating, convenient for personal use in offices, bedrooms, and other spaces, while electric underfloor heating systems create a comfortable heating environment for the entire house, appealing to consumers pursuing high-quality living. Therefore, despite the continued sluggishness in the real estate and infrastructure markets, the thriving electric heating industry and new energy charging piles still provide some order support for copper busbar enterprises.