Copper Prices Rising?

As we know, copper is one of the major components in the HVAC business. The recent natural disasters around the world have created many kinds of problems and there might be a new one that hasn’t even arrived yet. The earthquake that occurred last month in Chile caused their copper mines to shut down for several days. Chile boasts the largest copper exporting business in the world and this back up has already had a major impact on the HVAC industry as prices have already begun to rise.

The metal exchange market saw an increase in copper prices almost immediately but now there are new worries that are foreseen. HVAC distributors are concerned that the lack of copper production will affect their ability to manufacture copper-related HVAC products in the year 2011. While most production companies have already purchased enough to supply them adequately for 2010, they will find it hard to meet the same demands when they run out next year.

So what does this mean for American businesses? Because copper is such an important element in installing HVAC units the higher prices could affect price estimates for contractor jobs. As the squeeze on this essential metal forces suppliers to demand more for copper-related products it will in turn cause contractors across the nation to raise their prices. With enough luck we can step up our manufacturing businesses to catch up before the next year arrives!