On the 26th, in the stock market, wire and cable-related stocks such as Iljin Electric, Daewon Electric Wire, and LS ELECTRIC are showing a sharp upward trend. This is interpreted as reflecting expectations that the performance of related companies will improve due to the increase in demand for wires and cables driven by rising copper prices and expanded global power grid investments.
As of 10:20 AM in the KOSPI market on the same day, Daewon Electric Wire, Iljin Electric, LS ELECTRIC, and Samhwa Electric were trading more than 8% higher compared to the previous day's closing price. LS, Gaon Electric Wire, Daehan Electric Wire, HD Hyundai Electric, and Gwangmyeong Electric were also trading up more than 3%.
This is interpreted as an effect of the sharp rise in copper prices and the surge in demand for wires and cables as major countries around the world expand investments in power grids.
According to the London Metal Exchange, the spot price of copper exceeded $9,650 per ton on the 24th (local time). This represents an increase of more than 20% over six months and over 12% since the beginning of this year.
Kim Dohyun, a researcher at Samsung Securities, stated, "Copper prices are rising due to worsening supply and demand caused by production cuts by copper mining and refining companies," adding, "There are also expectations that power demand will surge due to the proliferation of artificial intelligence (AI) data centers in developed countries."
Furthermore, cable demand is also expected to increase sharply. According to CRU, a UK-based commodity market research firm, global demand for submarine cables is expected to grow from 6.4 trillion won in 2022 to 29.5 trillion won in 2029, about 4 to 5 times higher.
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