Xiao Mo: European car companies are following the "aluminium instead of copper" trend, which may impact global copper demand by 2% this year.

According to JPMorgan Chase, following the wave of "aluminum instead of copper" started by Tesla and Chinese electric vehicle companies, the collective turnaround of European traditional car companies signal a disruptive shift in the entire automotive industry's material supply chain. It is predicted that this trend will directly impact approximately 2% of global copper consumption demand just this year. A senior executive at Nexans, the world's second largest cable manufacturer, stated that because copper performs better in certain applications, manufacturers will still purchase copper at a higher price - but when the price of copper reaches about 3.5 times that of aluminum, they will begin purchasing aluminum. Currently, the price of copper is more than 4.2 times that of aluminum.