In recent years, the global copper market has witnessed a continuous upward trend in prices, with a sharp surge since 2025. Data shows that copper prices have risen by nearly 40% in 2025 alone, from around 68,000 yuan per ton in March to over 81,000 yuan per ton in October, creating an unprecedented cost pressure on industries closely related to copper, especially the waterproof connector industrysuperscript:3. As a key electronic component widely used in new energy, industrial automation, rail transit, marine engineering and smart city construction, waterproof connectors rely heavily on copper due to its excellent electrical conductivity, corrosion resistance and processability—copper accounts for 30% to 60% of the total production cost of waterproof connectors, making copper price fluctuations a core factor affecting the stable development of the entire industrysuperscript:3.
The impact of rising copper prices on waterproof connectors is comprehensive and in-depth, covering production costs, market pricing, enterprise operations and even the long-term development pattern of the industry, with no link able to remain unaffected.
1. Sharp Rise in Production Costs, Eroded Profit Margins
For waterproof connector manufacturers, the rise in copper prices directly leads to a substantial increase in raw material procurement costs, which is the most direct and significant impact. Raw materials generally account for 60% to 80% of the production cost of connectors, and copper, as the core raw material, has a decisive impact on the overall cost level. Taking a common waterproof connector as an example, each BNC plug’s cost increases by 0.03 yuan when copper prices rise by 10,000 yuan per ton, and a batch of 10,000 finished wire harnesses will face an additional material cost of 2,500 yuan—which may seem small in single unit, but accumulates to a huge burden for large-scale production.
More importantly, most waterproof connector manufacturers are facing difficulties in cost transmission. Affected by the weak demand in some downstream consumer electronics markets and the price sensitivity of terminal enterprises, manufacturers are often unable to fully transfer the increased costs to downstream customers by raising prices, resulting in a significant compression of profit marginssuperscript:4. For example, Xingkun Holdings reported that its operating cost increased by 34.77% in the 2025 interim report due to rising raw material prices, while its gross profit margin dropped from 36.97% in the same period last year to 30.31%, and its net profit attributable to the parent company decreased by 13.87% year-on-year despite a 21.60% increase in operating income. Small and medium-sized enterprises, in particular, are facing a more severe survival crisis due to their lack of scale advantages and bargaining power, with some even forced to reduce production or suspend operations.
2. Market Pricing Disturbance and Structural Adjustment
The rise in copper prices has disrupted the original pricing system of the waterproof connector market, triggering partial price adjustments and structural changes. Large-scale leading enterprises with strong brand influence and market share, such as Amphenol, TE Connectivity, AVIC Optoelectronics and Luxshare Precision, have a certain ability to transfer cost pressures to downstream customers, and some have begun to adjust product prices, with a price increase range of 5% to 15% in some productssuperscript:4. However, such price adjustments are often lagging behind copper price fluctuations, and the adjustment range is limited by market competition, making it difficult to fully offset the cost increase.
For the mid-to-low-end waterproof connector market, which is dominated by homogeneous competition, price wars have long been a common competition method. Under the pressure of rising copper prices, manufacturers in this segment are caught in a dilemma: raising prices will lead to the loss of customers, while not raising prices will face continuous profit compressionsuperscript:4. This has accelerated the industry shuffle, with some small and medium-sized enterprises with backward technology, low efficiency and weak cost control capabilities being eliminated, while enterprises with core technologies and scale advantages are further expanding their market share, promoting the concentration of the waterproof connector industry to increase.
In addition, the market demand structure is also quietly changing. Affected by price increases, some downstream customers have begun to adjust their procurement strategies, reducing the demand for low-end waterproof connectors with low added value, and turning to high-performance, high-reliability and cost-effective products—especially IP67 and above protection level copper-based waterproof connectors, whose market share has been increasing year by year, accounting for 62% of the overall market in 2024. This structural change has further promoted waterproof connector manufacturers to accelerate product upgrading and increase the added value of products to cope with cost pressure.
3. Enterprise Operation Pressure Increased, Promoting Technological Innovation
The continuous rise in copper prices has put forward higher requirements for the operational management and technological innovation capabilities of waterproof connector enterprises. In terms of supply chain management, enterprises have to adjust their procurement strategies, such as signing long-term supply contracts with copper suppliers to lock in raw material prices, or expanding the scope of suppliers to reduce the risk of price fluctuations. At the same time, enterprises are also strengthening inventory management, optimizing inventory turnover rate, reducing the occupation of funds by raw material inventory, and alleviating the pressure of capital flow.
In terms of production technology, reducing copper usage while ensuring product performance has become the core direction of enterprise innovation. Many enterprises are accelerating the research and development and application of copper alloy materials and surface treatment technologies, improving the conductivity and corrosion resistance of materials, and reducing the usage of pure copper under the premise of ensuring the performance of waterproof connectorssuperscript:3. For example, the application of high-conductivity copper alloys and precision die-casting technology can not only reduce copper consumption, but also improve the consistency and yield of products, achieving a win-win situation of cost reduction and quality improvement. In addition, aluminum-copper substitution technology has also made important progress, especially in the field of automotive low-voltage wire harnesses, aluminum has gradually replaced copper due to its advantages of low cost and light weight, providing a new path for enterprises to reduce costs.
In terms of product research and development, enterprises are accelerating the development of high-value-added products, such as intelligent waterproof connectors integrated with temperature sensing and state monitoring functions, to increase product profit margins and reduce dependence on raw material prices. At the same time, some enterprises are also expanding overseas markets, especially the "Belt and Road"沿线 countries, relying on cost advantages and product quality to open up new growth spaces and alleviate the impact of domestic cost pressure and market competition.
4. Long-Term Impact on Industrial Development and Future Trends
From the perspective of long-term industrial development, the continuous rise in copper prices is not only a challenge but also an opportunity for the waterproof connector industry, which will further promote the high-quality development of the industry. On the one hand, the pressure of cost increase will force enterprises to abandon the extensive development model relying on low cost and low price, and turn to the development path of technological innovation, product upgrading and quality improvement, promoting the overall technological level of the industry to improve.
On the other hand, with the deepening of the "double carbon" goal and the rapid development of new energy, industrial automation and other emerging industries, the demand for waterproof connectors will continue to grow, especially the demand for high-performance, high-reliability copper-based waterproof connectors in photovoltaic inverters, energy storage systems, new energy vehicle charging piles and other fields will maintain a high growth rate. It is predicted that the global waterproof connector market will maintain a compound growth rate of 5.5% to 7.2% in the next five years, and the Chinese market will exceed 115 billion yuan by 2030. This strong market demand will provide strong support for the stable development of the industry, offsetting part of the impact of rising copper prices.
In the future, the waterproof connector industry will show two obvious development trends: first, the integration of materials and technology will be further strengthened, and enterprises will pay more attention to the research and development and application of new materials and new processes to achieve cost control and performance improvement; second, the industry concentration will continue to increase, and leading enterprises with core technologies, scale advantages and perfect supply chain management capabilities will occupy a dominant position in the market, driving the entire industry to develop in the direction of high quality and high added valuesuperscript:4.
In conclusion, the rising copper prices have brought comprehensive and in-depth impacts on the waterproof connector industry, from production costs and market pricing to enterprise operations and industrial development patterns. For waterproof connector enterprises, only by actively responding to challenges, optimizing procurement and supply chain management, accelerating technological innovation and product upgrading, and improving core competitiveness, can they successfully pass through the period of cost pressure and seize the development opportunities brought by industrial upgrading. For the entire industry, the impact of rising copper prices will promote a more rational and healthy development, laying a solid foundation for the long-term stable development of the waterproof connector industry in the context of global industrial transformation and upgrading.
