Latest news with #EncoreWire
Yahoo
14-07-2025
- Business
- Yahoo
World's Top Cable Maker Sees US Copper Tariff as Opportunity
(Bloomberg) -- The world's biggest maker of copper cable is applauding President Donald Trump's planned 50% tariff on the metal, saying it will bolster the American supply chain, with costs passed on to customers. Why Did Cars Get So Hard to See Out Of? How German Cities Are Rethinking Women's Safety — With Taxis Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests Italy's Prysmian SpA — which last year shelled out $4 billion-plus to buy Texas-based Encore Wire Corp. — is in regular contact with the administration ahead of the measure's implementation on Aug. 1, said Maria Cristina Bifulco, head of investor relations and sustainability. Trump sparked chaos in metals markets last week by announcing the higher-than-expected copper tariff, the latest twist in a tumultuous period for industrial commodities. Since February, when Trump declared 'it's time for copper to come home' and aired the potential for levies, global traders have sent record volumes of the metal to the US to get ahead of the tariff. Like the rest of the industry, Encore and its Milan-listed owner are waiting for details. Still, given the 'spirit is to protect and facilitate local business,' it's expected to be applied to both semi-finished products like cable as well as raw metal, Bifulco said. 'We find the administration very open, very sensitive,' Bifulco said in an interview Monday. 'They understand very well the situation. So in this respect, we are positive.' Prysmian, which churns out about 220,000 metric tons a year of cable at a sprawling facility outside of Dallas, says it stands to benefit from tariffs relative to competitors because it sources a larger part of its copper domestically — from Phoenix-based Freeport-McMoRan Inc. — and is vertically integrated. 'This will further reinforce the leadership of the local players,' she said. 'We are better placed than other players.' Stakeholders in the industry are divided. Some say any meaningful increase in domestic production would take years and require additional incentives given how difficult and expensive it is to build and operate mines and plants in the US. Incumbent producers such as Freeport and Rio Tinto Group stand to benefit from a premium on US-made metal, while analysts warn it will be consumers who will have to pick up the tab. Copper prices in the US have surged ahead of the tariff. So far, Encore has been able to pass those on, although strength of future demand remains to be seen. Eventually, aluminum may be substituted for copper in some applications, Bifulco said. 'Since the final customer is the one paying the increase in prices, you need to make sure to carefully assess demand to make sure that it's resilient enough,' she said. While it's too soon to start replacing what Prysmian does import from Latin America, logically that would come from refined scrap in arrangements similar to what the company has with German copper processor Aurubis AG, she added. Prysmian has leaned on acquisitions for growth after being carved out of tire-maker Pirelli in 2005. The company bought Encore Wire last year to boost its exposure to the low-voltage electrical applications on which data centers largely rely. 'Cables are becoming all of a sudden sexy,' Bifulco said. 'We are at the center of these electrification and digitalization processes and the leader in our space. We are very busy.' (Adds quote in sixth paragraph) 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot 'The Turbulence Is Brutal': Four Shark Tank Businesses on Tariffs Trump's Cuts Are Making Federal Data Disappear Trade War? No Problem—If You Run a Trade School ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-07-2025
- Business
- Yahoo
World's Top Cable Maker Prysmian Cheers Trump's Copper Tariff
(Bloomberg) -- The world's biggest maker of copper cable is applauding President Donald Trump's planned 50% tariff on the metal, saying it will bolster the American supply chain, with costs passed on to customers. Why Did Cars Get So Hard to See Out Of? How German Cities Are Rethinking Women's Safety — With Taxis Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests Italy's Prysmian SpA — which last year shelled out $4 billion-plus to buy Texas-based Encore Wire Corp. — is in regular contact with the administration ahead of the measure's implementation on Aug. 1, said Maria Cristina Bifulco, head of investor relations and sustainability. Trump sparked chaos in metals markets last week by announcing the higher-than-expected copper tariff, the latest twist in a tumultuous period for industrial commodities. Since February, when Trump declared 'it's time for copper to come home' and aired the potential for levies, global traders have sent record volumes of the metal to the US to get ahead of the tariff. Like the rest of the industry, Encore and its Milan-listed owner are waiting for details. Still, given the 'spirit is to protect and facilitate local business,' it's expected to be applied to both semi-finished products like cable as well as raw metal, Bifulco said. 'We find the administration very open, very sensitive,' Bifulco said in an interview Monday. 'They understand very well the situation. So in this respect, we are positive.' Prysmian, which churns out about 220,000 metric tons a year of cable at a sprawling facility outside of Dallas, says it stands to benefit from tariffs relative to competitors because it sources a larger part of its copper domestically — from Phoenix-based Freeport-McMoRan Inc. — and is vertically integrated. Stakeholders in the industry are divided. Some say any meaningful increase in domestic production would take years and require additional incentives given how difficult and expensive it is to build and operate mines and plants in the US. Incumbent producers such as Freeport and Rio Tinto Group stand to benefit from a premium on US-made metal, while analysts warn it will be consumers who will have to pick up the tab. Copper prices in the US have surged ahead of the tariff. So far, Encore has been able to pass those on, although strength of future demand remains to be seen. Eventually, aluminum may be substituted for copper in some applications, Bifulco said. 'Since the final customer is the one paying the increase in prices, you need to make sure to carefully assess demand to make sure that it's resilient enough,' she said. While it's too soon to start replacing what Prysmian does import from Latin America, logically that would come from refined scrap in arrangements similar to what the company has with German copper processor Aurubis AG, she added. Prysmian has leaned on acquisitions for growth after being carved out of tire-maker Pirelli in 2005. The company bought Encore Wire last year to boost its exposure to the low-voltage electrical applications on which data centers largely rely. 'Cables are becoming all of a sudden sexy,' Bifulco said. 'We are at the center of these electrification and digitalization processes and the leader in our space. We are very busy.' 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot 'The Turbulence Is Brutal': Four Shark Tank Businesses on Tariffs Trump's Cuts Are Making Federal Data Disappear Trade War? No Problem—If You Run a Trade School ©2025 Bloomberg L.P.
Bloomberg
14-07-2025
- Business
- Bloomberg
World's Top Cable Maker Prysmian Cheers Trump's Copper Tariff
The world's biggest maker of copper cable is applauding President Donald Trump's planned 50% tariff on the metal, saying it will bolster the American supply chain, with costs passed on to customers. Italy's Prysmian SpA — which last year shelled out $4 billion-plus to buy Texas-based Encore Wire Corp. — is in regular contact with the administration ahead of the measure's implementation on Aug. 1, said Maria Cristina Bifulco, head of investor relations and sustainability.
Yahoo
09-07-2025
- Business
- Yahoo
Prysmian shares rise as Italian cable maker seen as winner amid US copper tariffs
MILAN (Reuters) -Prysmian shares rose as much as 4% on Wednesday on expectations the world's largest cable maker's large U.S. business could benefit from U.S. tariffs on copper, as it sources the metal locally and should be able to pass on higher prices to customers. U.S. President Donald Trump on Tuesday said he would impose new levies, including a 50% tariff on imported copper, broadening a trade war that is rattling markets worldwide. "We constantly monitor potential effects on metals coming from tariffs and as a result we align prices accordingly," a spokesman of Italy's Prysmian said. Copper is a key element used in the production of a wide variety of cables including for power grids, construction, industrial uses and high-voltage transmission. As a group, Milan-based Prysmian is the largest single buyer of copper worldwide, and the leader in the U.S. cable sector. The Italian firm has the United States as its largest market, where last year it acquired Texas-based Encore Wire in a $4.2 billion deal. "We highlight Prysmian as a relative tariff winner," analysts at Citi said in a note, pointing Prysmian's U.S. low-voltage business sources its raw copper from a Freeport mine in Arizona and operates its own copper rod mill in Texas rather than buying copper rod from suppliers. "As such, its domestic, vertically integrated set-up in copper gives it a competitive edge compared to smaller players in our view," they said. By 1000 GMT Prysmian shares were up 3.9%, among the best performers among Italy's blue chips. Italian broker Equita said in a note tariffs should support copper prices and strengthen margins in the U.S. low voltage business, net of effects on demand. The Prysmian spokesman said the company still needed to assess the final set-up of the new tariff scheme but it was well positioned thanks to its vertical integration in the copper space in the United States. "Copper, and aluminium, are central to the energy objectives of the (U.S.) administration and we are committed to help support the development of local industrial reshoring, the development of AI through data centres and the strengthening of the U.S. power grid thanks to our leadership position in the market".
Yahoo
09-07-2025
- Business
- Yahoo
Prysmian shares rise as Italian cable maker seen as winner amid US copper tariffs
MILAN (Reuters) -Prysmian shares rose as much as 4% on Wednesday on expectations the world's largest cable maker's large U.S. business could benefit from U.S. tariffs on copper, as it sources the metal locally and should be able to pass on higher prices to customers. U.S. President Donald Trump on Tuesday said he would impose new levies, including a 50% tariff on imported copper, broadening a trade war that is rattling markets worldwide. "We constantly monitor potential effects on metals coming from tariffs and as a result we align prices accordingly," a spokesman of Italy's Prysmian said. Copper is a key element used in the production of a wide variety of cables including for power grids, construction, industrial uses and high-voltage transmission. As a group, Milan-based Prysmian is the largest single buyer of copper worldwide, and the leader in the U.S. cable sector. The Italian firm has the United States as its largest market, where last year it acquired Texas-based Encore Wire in a $4.2 billion deal. "We highlight Prysmian as a relative tariff winner," analysts at Citi said in a note, pointing Prysmian's U.S. low-voltage business sources its raw copper from a Freeport mine in Arizona and operates its own copper rod mill in Texas rather than buying copper rod from suppliers. "As such, its domestic, vertically integrated set-up in copper gives it a competitive edge compared to smaller players in our view," they said. By 1000 GMT Prysmian shares were up 3.9%, among the best performers among Italy's blue chips. Italian broker Equita said in a note tariffs should support copper prices and strengthen margins in the U.S. low voltage business, net of effects on demand. The Prysmian spokesman said the company still needed to assess the final set-up of the new tariff scheme but it was well positioned thanks to its vertical integration in the copper space in the United States. "Copper, and aluminium, are central to the energy objectives of the (U.S.) administration and we are committed to help support the development of local industrial reshoring, the development of AI through data centres and the strengthening of the U.S. power grid thanks to our leadership position in the market".
