Copper Letter
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![]() 25 Silver Plated XX Letter Copper European Stoper Bead Fit Charms Bracelet150622 US $8.66
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Copper LetterHow To Shop for Tray Cable And Why Copper Pricing Affects The Final Price You Pay
Most people following the markets lately have noticed that commodity costs have been on a steady rise through the first half of the year. As vntc cable as well as tray cable, type g, type w, and dlo cable are all heavily dependent on raw material costs, there has been quite a large increase in the pricing of these items.
Most of our regular customers are acutely aware of the effects of increasing commodity prices. Most important of course is the price of copper. Today for instance copper was listed for about $4.30 lb at the COMEX. At this price point it is hovering near its all time closing high of around $4.60 per pound hit earlier this year at the beginning of 2011. The question on everyone's mind is how much higher can it go.
Closely following copper in electrical cable production is the price of oil. As the outer sheathing and conductor insulation of most cables are oil based, the price of oil plays a big role in finished price also. Oil of course topped out at about $147 per barrel just 2 1/2 short years ago and is currently on the rise again primarily due to tensions in the Middle East and North Africa. Oil right now sells for around $104 per barrel.
If the economy continues to improve, it is very possible that we will experience a continued rise in these raw input prices. Many economists agree that we are in the midst of a slow but steady rebound that will continue throughout 2011 and beyond.
Many emerging markets are also seeing improvements with China of course being the biggest in terms of economic growth. If we can continue on this current track it is almost assured that copper and oil will continue the steady march north. If you are a big buyer of the larger sizes of wire and cable it may be in your best interest to take a look at projected usage for later this year and maybe consider stocking up now before we begin to see the large price increases.
Here is is how to make this knowledge work for you. When you see costs go down on the NYMEX, ensure that your supplier is reducing the prices of their finished items to you. Many times, distributors are more apt to increase prices than to reduce them. Armed with the knowledge of raw goods costs, ensure that your supplier is pricing their wire and cable appropriately.
When you see there is a disparity in the cost of the raw commodities and your finished product price, consider reaching out to another distributor for another bid. There are many players who sell tray cable and vntc cable. This diligence on your part could help you keep more profit for yourself. Additionally, knowledge of falling prices can allow you to trim your bid prices, which might in turn make your bid more competitive than your peers – and allow you to win more business.
Should you have any concerns or are in need of more detailed advice, please call us. Delco Wire has been in the wire and cable business for over 30 years. Our very knowledgeable staff will be more than happy to help in any way we can. We can be reached toll free at 800-714-9473.


US $8.66
