Copper Tubing Prices Explained

Copper tubing prices posted tailwinds in the market as its market growth promises profitability.

The global expansion of the construction industry (both developed and developing countries) remains its primary price mover. Moreover, the development of HVAC (Heating, Ventilation, Air Conditioning, and Refrigeration) is another significant cost driver. Furthermore, the lucrative copper pipe and tube destinations are Japan, Canada, and Germany as each market is forecast to grow by 3.2%, 3.8%, and  3.7% respectively. 

Why are copper tubing prices fluctuating?

1. Mining and Production Costs

Extracting copper ore from the soil is the first stage in getting copper. Additionally, the cost of extracting and shipping this ore varies based on several variables, including the location of the mine, the size of the deposit, and the site’s accessibility.

Also, the overall cost of producing copper rises as a result of higher extraction costs. Thus, fluctuations in the cost of mining and production directly affect the market’s overall copper tubing prices.

2. Geopolitical Events

Changes to international trade regulations and the implementation of taxes have the potential to hinder the worldwide flow of goods, including copper.

Thus, trade tensions lead to uncertainties in the market, impacting the demand and supply dynamics and consequently, copper prices. Overall, since worldwide markets are interrelated, any disruption or change in one area has an impact on its market, ultimately impacting the cost of copper tubing and other products using copper.

3. Natural Disasters

Natural disasters harm infrastructure, interrupt mining and manufacturing activities, generate power outages, and change supply and demand dynamics.  These all have an impact on copper tubing pricing. Similarly, the extent of the impact depends on the severity of the natural disaster, the geographic location of mining operations, and the overall resilience of the copper supply chain.

4. Global Economic Conditions

The expansion of the economy typically stimulates the construction and development of infrastructure, resulting in increased demand for copper tubing in applications such as plumbing, heating, and cooling systems.

Additionally, the requirement for copper tubing is often impacted by a decline in construction activity during recessions. On the other hand, economic downturns typically result in a decrease in activity within these industries, which in turn impacts the demand for copper tube products.

Which variables impact the price of copper tubing?

• Mining and Production Costs
• Geopolitical Events
• Natural Disasters
• Global Economic Conditions
• Supply and Demand
• Market Sentiments

Where does copper tubing come from?

Copper tubing is made by extracting and processing copper ore, which is mostly obtained from copper sulfide ores. Also, this metal tube is used in many different applications such as medical gas transportation, heating, refrigeration, and plumbing. The process of obtaining copper tubing involves several stages:

1. Mining – Extraction of copper ore commonly takes place in sizable open-pit mines or underground mining operations, with the selection of the mining method influenced by factors like ore depth, ore type, and economic considerations.

2. Crushing and Grinding – After extraction, it is crushed and ground into fine particles. This method increases the surface area of the ore, facilitating the subsequent stages of the extraction process.

3. Concentration – After crushing and grounding, it goes through a process called froth flotation. Chemicals are added in this process to create a frothy mixture. Then, the froth sticks to the copper minerals only, separating them from the other minerals in the ore.

4. Smelting – The concentrated copper ore is subjected to smelting. During this process, fluxes and other elements are added to the concentrate after heating in a furnace. Thus, this results in the production of molten copper, which is then poured into anodes.

5. Refining – To remove impurities, the copper anodes undergo additional refining procedures. One popular process for producing high-purity copper is electrolytic refining. This includes dissolving copper from the anode and redistributing it onto a cathode.

6. Casting – The refined copper is cast into various shapes, including tubes. To get the correct tube shape in tubing, copper is often cast into billets or logs and then extruded or pulled.

7. Manufacturing – Additional processing is applied to the copper tubing to comply with specific standards and requirements. These procedures may encompass heat treatment, known as annealing, to enhance ductility, as well as actions like straightening, cutting, and surface finishing.

8. Distribution and Use – After manufacturing, copper tubing is supplied to numerous sectors, including plumbing, heating, ventilation, air conditioning, refrigeration, and construction.

What are the uses of copper tubing?

Since copper is recyclable, it is commonly used to make copper tubing. Recycling is essential for protecting the environment, saving energy, and maintaining natural resources.

Therefore, copper continues to be a preferred option for a wide range of applications and sectors. Some common industrial applications of copper tubing include:

1. Fire Sprinklers – Copper tubing provides an excellent fire prevention solution by acting as a water pipeline in fire sprinkler systems. As it is non-corrosive, the water won’t get colored or rusty around it.

2. Geothermal Heating and Cooling Systems – Its remarkable characteristics, such as high thermal conductivity and low thermal expansion make it an essential equipment in the exchange of heat between underground energy sources like water or earth and structures or vehicles.

3. Water Supply Systems – It serves as a pipe for transporting potable water from the source to consumers, offering resistance to corrosion and bacteria. Also, this ensures the quality and safety of the water supply.

4. Air Conditioning and Refrigeration Systems – In many HVAC systems, copper tubing is used to transport both hot and cold air. Its outstanding thermal conductivity makes heat transfer effective and consistent. Moreover, it has excellent strength and durability, which makes it ideal for extended usage.

5. Medical Gas and Vacuum Systems – In healthcare facilities, it’s employed to convey several gasses, such as oxygen, medicinal air, nitrogen, nitrous oxide, and carbon dioxide. Generally, its application ensures the purity of the gasses by preventing the buildup of microbiological growth in gas systems.

What is the future price of copper tubing?

The growing global construction activities in the commercial, industrial, and residential domains openly fuel the copper tubing market. There is an increasing need for copper pipes and tubes which are advantageous due to their non-pyrogenic qualities, flexibility, and simplicity of handling.

For instance, manufacturers focus on producing copper tubes with improved heat transfer for HVAC and refrigeration applications, supporting the demand for eco-friendly solutions. Also, the evolution of green building practices opens new avenues for copper tube adoption in the construction industry as this commodity is a recyclable material with a long service capacity.

Moreover, the industry is also positively impacted by the rising use of solar energy which seeks to utilize sustainable metals. Overall, the average price of copper tubing in 2028 will be around $6 per kilogram or $0.06 per pound with a projected CAGR of 2.8%.