Market Overview
Global metal markets have entered 2025 with continued upward pressure on copper and aluminum, driven by electrification, grid expansion, EV production and tighter supply conditions. World Bank analysis shows ongoing pressure on base metals into 2025–2026. Aluminum forecasts have been revised upward for 2025-2026 due to strong demand, particularly from China.

Copper Trends
Copper remains structurally tight due to supply disruptions and rising demand from electrification, data centers, and EV markets. Market imbalance is expected to persist into 2025–26. Demand from green technologies and infrastructure remains a strong driver.

Component Impact
Coils (Cu/Al): Most affected. Structural copper shortages and rising aluminum demand may raise coil costs. Drives & Control Boards: Moderate impact due to copper content and electronics cycles. Filters: Limited metal impact, but slight increases due to energy and transport.

Copper Clause (CU Clause)
Many agreements adjust coil prices based on copper indices such as LME/COMEX. With expected copper shortages in 2025-2026, the CU clause will likely activate.

Estimates for 2025-2026
Coils (Cu/Al): +5–12% (dependent on contracts and market). Drives & Control Boards: +3–7%. Filters: +1–4% (mainly non-metal factors).

Recommendations
Secure coil capacity for Q2–Q3 and diversify copper‑critical suppliers. Adjust pricing mechanisms to improve transparency. These steps align with projected ongoing pressure on metals.