Why are copper cables so expensive?

What the Data Says: Copper Price Updates - Gordian

Gordian's RSMeans Data stands as North America's most extensive and reliable construction cost database. With over 92,000 construction material, labor, and equipment cost entries, RSMeans Data is an invaluable resource for architects, engineers, and contractors who rely on its accuracy and timeliness for various projects.

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Consistent and thorough updates make the database a go-to tool for construction professionals. Gordian's team of data analysts and cost engineers continuously tracks long-term price trends, offering industry leaders the insights they need to navigate cost fluctuations and make well-informed strategic decisions.

In this blog post, we aim to leverage RSMeans Data to analyze quarterly copper price trends, a crucial material in the construction industry, and provide insights into the electrical conduit market.

DISCLAIMER: The prices mentioned below represent the national average and are offered for reference purposes only. Costs in your local market may vary.

Tracking the Price of Copper With RSMeans Data

April 2024

As we move into spring, copper prices remain steady despite predictions of volatility due to a mismatch between global supply and demand from last year. The anticipated surge in copper has yet to materialize, although it's expected later this year. Strains in the supply chain are noticeable, partly due to halts in South American mining operations, and global green energy initiatives requiring copper are accelerating. This increasing demand could lead to significant price rises in the next quarter.

The price of conduit has stayed stable since its peak of $175 per hundred linear feet (CLF) in early 2023, thanks to an aluminum surplus, the primary material for conduits. This trend is likely to persist.

January 2024

Entering 2024, the cost of copper wire has remained consistent but faces uncertainty. Disruptions in Panama and Peru—stemming from legal and labor disputes, as reported by Reuters—pose risks to the stability of copper prices. The permanency of these mining pauses is yet to be determined.

November 2023

Despite a modest increase in copper prices throughout 2023, a price decrease is anticipated in 2024. This potential drop is attributed to a reduced international demand paired with increased supply due to new mining operations in Africa and South America.

July 2023

The price of copper and copper wire stabilized mid-year, defying earlier expectations of significant volatility.

January 2023

Copper wire prices surged almost 24% in 2022, with most of the increase occurring in the latter half of the year. This price hike was driven by rising labor wages, increased transportation costs, and heightened interest in alternative energy technologies that utilize copper. Experts predict continued volatility for copper prices throughout 2023.

January 2022

The prices of copper pipe and wire increased dramatically, with copper wire rising 23% and copper pipe skyrocketing 76%. This surge was driven by the demand from green technologies, including electric vehicles, pushing copper prices upward across all economic sectors.

September 2021

Following a spike in 2019, copper wire prices remained stable until 2021 when they increased by 14%. By the third quarter, they had risen by 67% compared to the same period in 2020. Factors contributing to this volatility included tariffs, the COVID-19 pandemic, increased transportation and labor costs, and typical supply and demand fluctuations.

Copper Vs. Fiber Optic Cabling - Pros and Cons for 2024

Advantages and Disadvantages of Copper vs. Fiber

Numerous studies have examined the advantages and disadvantages of copper and fiber data wiring. For example, one study in Mdantsane, South Africa, published in the Journal on Innovation and Sustainability, found that the initial cost of deploying fiber optic networks was the biggest hurdle in choosing fiber cabling. Another study by Logeshwaran in the Journal on Communication Technology indicates some essential considerations in choosing the best network cabling system — versatility in accommodating data, voice, and video, compatibility with active equipment, ease of maintenance when updating the configuration, and reliability throughout the system's service life. Our research of the two cable network systems indicates fiber's high cost as a prohibitive factor. However, a study by Jim Hayes published in Electrical Contractor concluded that cost-effectiveness should consider the 'complete network, not just its cabling costs.' When doing so, fiber cabling systems 'are comparable to Cat 6 copper cabling.'

This article explores the pros and cons of fiber and copper and the advantages of one cabling system over the other. Below are the pros and cons of the two wiring systems.

Top Pros and Cons for Copper vs. Fiber

Copper Wire Pros

Cost-effective

Copper wire is less expensive, making it a more economical choice for small businesses or home networks.

Availability

Copper wire is reliably available from local retailers, making it a popular choice for network applications.

Compatibility

Copper wire is compatible with most existing infrastructures, providing an easy upgrade for outdated networks.

Durability

Copper wire is durable and a reliable option for outdoor applications.

Copper Wire Cons

Limited bandwidth

Copper wire has a restricted bandwidth, unsuitable for transmitting large amounts of data over long distances.

Electromagnetic interference

Copper wire is susceptible to electromagnetic interference, which can cause data loss or corruption.

Signal degradation

Copper wire can experience signal degradation over long distances, which can lead to data loss or errors.

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Limited transmission distance

Copper wire can only transmit data over short distances, often less than 300 feet, making it unsuitable for long-distance data transmission.

Fiber Optic Pros

High bandwidth

Fiber optic cables possess a significantly higher bandwidth compared to copper wire, making them excellent for transmitting large amounts of data over long distances.

Immune to interference

Fiber optic cables are immune to electromagnetic interference, resulting in more reliable performance in noisy environments.

High signal quality

Fiber optic cables ensure high-quality signal transmission, minimizing the risk of data loss or errors.

Distance transmissions

Fiber optic cables can transmit data over long distances without experiencing signal degradation, making them ideal for long-distance applications.

Fiber Optic Cons

Cost

Fiber optic cables are generally more expensive than copper wire, making them a less economical choice for small businesses or home networks.

Specialized installation

Fiber optic cables require specialized installation and handling, which can increase overall installation costs.

Availability

Fiber optic components and network equipment are more challenging to source, often prioritized for large bulk orders.

Compatibility

Fiber optic cables are generally not compatible with existing copper wire infrastructure, making upgrades more complex for older networks.

Top Selection Considerations for Network Cabling

Copper Cabling Top Selection Considerations

• Cheaper
• Slower transmission speed
• Heavier and thicker
• More difficult to install
• Most common type of cabling
• More widely available
• Easier to cut and splice
• Susceptible to electromagnetic interference (EMI)
• Signal loss
• Distortion
• Disruptions
• Limited bandwidth
• Easily subject to becoming outdated due to technological advances
• Lower installation price currently
• Tensile strength of 25 pounds
• Subject to corrosion and may need replacement in as little as 5 years
• Weight per 1,000 ft = 39 lbs
• Loses 90% of its transmission signal at 100 meters
• Low security, easily tapped
• Higher maintenance, risk of tampering, and replacement cost

Fiber Optic Cabling Top Selection Considerations

• Faster transmission speed
• Longer distances
• More reliable
• Most durable, up to 50 years
• Thinner and more lightweight
• Weight per 1,000 ft = 4 lbs
• Higher security
• Tensile strength of 200 pounds
• Not affected by EMI (electric motors, power lines, and microwaves)
• Less susceptible to signal loss, distortion, or disruption
• Less likely to become outdated due to technological advances
• More likely to meet heavy demands of growing businesses
• Possibly a lower-cost option in the long run
• Loses only 3% of its transmission signal per 100 meters
• Better for supporting a LAN
• Higher upfront price
• High security (does not carry electrical signals)
• Easily submerged in water

The chart below compares the 14 most important differences between copper and fiber wiring. Fiber has the advantage in all performance-related comparisons. Copper holds the edge in terms of cost, accessibility, and compatibility with existing network systems in many established businesses.

Comparison Chart: Copper vs. Fiber Optic Cables

Fiber optic cables offer superior performance compared to copper cables, especially over long distances. They provide higher data transmission rates, larger bandwidths, and are immune to electromagnetic interference. Copper cables, however, are still widely used for short-distance networking due to their lower cost. Additionally, network devices that require more bandwidth, higher speeds, and more reliable internet connectivity, such as security cameras, digital signage, and VoIP phone systems, make fiber optic cable the obvious choice for telecommunications and internet connectivity. To determine the best option for your business, seek a professional network analysis. Call Les Olson IT at 801-922-5060 to schedule a free network analysis.

Are you interested in learning more about fiber optic interconnection box? Contact us today to secure an expert consultation!

Footnotes

• Oki, Olukayode, and Morolake Oladayo Lawrence. " ." Journal on Innovation and Sustainability RISUS 13.2 (2022): 111-123. Abstract. Accessed 24 Apr. 2023. revistas.pucsp.br/risus/article/view/58093
• Logeshwaran, J., et al. " ." ICTACT Journal on Communication Technology 13.01 2022. pp. 2636-2637. Accessed 24 Apr. 2023. www.researchgate.net/profile/Logeshwaran-Jaganathan/publication/363332781_The_role_of_integrated_structured_cabling_system_ISCS_for_reliable_bandwidth_optimization_in_high-speed_communication_network/links/63180fad5eed5e4bd1501c8d/The-role-of-integrated-structured-cabling-system-ISCS-for-reliable-bandwidth-optimization-in-high-speed-communication-network.pdf
• Hayes, Jim. ? Electrical Contractor. Apr 15, 2000. Webpage. Accessed 24 Apr. 2023. www.ecmag.com/magazine/articles/article-detail/miscellaneous-copper-cabling-really-cheaper-fiber-optic-cabling