A surge in copper thefts is sweeping through Japan, driven by the precious metal's escalating prices. The price of copper, now approximately 1.44 million yen (about $9,250) per tonne, has nearly doubled compared to five years ago. This price spike has significant implications for businesses across the nation, particularly those in the renewable energy sector. As a result, many Japanese companies, including solar farm operators, are transitioning to aluminum cables as a viable and cost-effective alternative.
The thefts stem from a combination of increased demand for copper and external economic factors. Over the past year, copper prices have surged by 13%, largely due to its critical role in electric vehicles and solar energy infrastructure. Additionally, the weak yen has exacerbated the situation, making copper imports more costly for Japanese businesses. JX Advanced Metals, a leading provider of copper quotes in Japan, notes that the current market price serves as a benchmark across the country.
The global demand for copper continues to rise, influenced by its essential use in emerging technologies and renewable energy solutions. This rising demand, coupled with supply chain constraints, is expected to sustain the upward trajectory of copper prices. Consequently, thefts of copper cables pose a growing challenge for businesses in Japan, leading many to seek alternative materials.
The shift towards aluminum cables is gaining traction among Japanese companies as they strive to mitigate the financial impact of copper thefts. Aluminum alternatives offer a practical solution, providing similar functionality at a lower cost. This transition highlights the adaptability of Japanese enterprises in navigating economic challenges and safeguarding their assets.