Rising Global Copper Prices Push Up Cost of Electrical Cables and Materials

Installing electricity connections while building new houses has become increasingly expensive, as the rising price of copper in the international market has pushed up the cost of electrical wires and related materials in Nepal.

Copper is a key raw material used in electrical wires, most of which are manufactured domestically using imported copper. Traders say a surge in global copper prices, coupled with the weakening of the Nepali currency against the US dollar, has led to a sharp rise in prices in the domestic market.

“At present, a 90-metre roll of copper electrical wire costs around Rs 1,900, whereas the same roll was available for Rs 1,450 just three months ago,” said Milan Shivakoti, president of the Kathmandu Electrical Traders’ Association.

According to traders, the price of copper in the local market has surged in recent months due to rising international prices and currency depreciation.

Data from the London Metal Exchange show that copper was priced at $10,872.50 per metric tonne on November 5, 2025. The price climbed to $13,844 per tonne by January 29, 2026, before easing slightly to $12,987 per tonne on February 2.

The upward trend is not limited to recent months. A World Bank commodities market outlook report released in January notes that copper prices have been on a steady rise over the past few years. The average price of copper increased from $8,490 per tonne in 2023 to $9,947 per tonne in 2025, with prices climbing steadily since the third quarter of 2025.

During the third quarter of 2025 (July–September), the average price stood at $9,808 per tonne, rising to $11,112 per tonne in the fourth quarter, according to the report.

International media reports attribute the surge in copper demand to its growing use in renewable energy production, including wind and solar power equipment, artificial intelligence data centres, and other high-technology industries.

As Nepal relies entirely on imported copper for the production of electrical wires and related materials, fluctuations in global prices directly affect domestic costs, traders said.

“Prices of copper-based products have increased by around 30 percent in just three months,” Shivakoti said, adding, “Copper prices have gone up by nearly 30 percent compared to three months ago.” He further said that the prices of copper utensils have also risen by up to Rs 600 per kilogram during the same period.

According to traders, copper utensils that cost around Rs 1,800 per kg three months ago are now priced at up to Rs 2,400 per kg.

Commonly used wire sizes in the market include 1 mm and 2.5 mm, while house construction typically requires wires of 0.75 mm, 1 mm, 1.5 mm, and 2.5 mm. Wires used for switches and lighting generally measure 1 mm. Traders said prices have increased across all these categories.

The rise in copper prices comes at a time when prices of precious metals such as gold and silver have also increased. Shivakoti said electrical wires account for the largest share of consumption in the electrical materials market, which remains highly competitive, with around 10 industries involved in the production and sale of copper wires.

Consumers purchasing copper wires for private housing and large projects are now having to spend significantly more. The sharp rise in the US dollar against the Nepali currency has further driven up prices of copper-based electrical materials.

Raghavendra Thakur, general manager of Janaki Cable Industries Limited, said copper prices have shown sharp volatility over the past three months.

“The increase in international prices has directly affected the Nepali market,” he said. “We are advising customers not to make purchases unless it is urgent, as prices are fluctuating heavily. Even regular customers are being asked to wait for some time.”

Thakur said the cost of imported raw copper has risen from around Rs 1,500 per kg to Rs 2,050 per kg. He also attributed the price rise partly to the ongoing global trade tensions.

Janaki Cable Industries, which recorded transactions of around Rs 1.03 billion last year, supplies both household consumers and various development projects.

Meanwhile, an official from Litmus Industries Limited said that despite the price hike, imports and sales have not declined significantly.

 “Since prices have risen in the international market, some fluctuation in the domestic market is natural. Production and sales are adjusted according to demand, and despite higher prices, demand has remained largely stable,” the official said.