China smartphone shipments slumped in June on inventory overhang: Jefferies
Investing.com -- Prysmian (BIT:PRY) stock gained 3% following the Trump administration’s announcement of 50% tariffs on copper products, which analysts believe will benefit the cable manufacturer’s US operations.
The administration’s plan, set to take effect August 1st, imposes tariffs on semi-finished copper products including wires, pipes, and cables, but crucially excludes copper input materials such as cathodes - the main raw material Prysmian uses in production.
The policy also requires 25% of US-produced copper scraps to be sold domestically, with similar requirements for copper input materials starting at 25% in 2027 and increasing to 40% by 2029, aimed at boosting US refining capacity.
Jefferies analysts viewed the development positively: "We see a positive outcome for Prysmian in the US. Firstly, the wording confirms the inclusion of semi-finished & derivate products including copper wires and cables, which should advantage local players (although imports are relatively low at ~15%).
Secondly, copper input materials are excluded specifically copper cathodes, which is the main raw material bought by Prysmian meaning costs are unlikely to move higher for vertically integrated cable manufacturers.
Thirdly, Prysmian also has the capability of transforming copper scraps, the new regulation will improve the local supply of scraps and again provide a cost advantage to vertically integrated local producers."
The tariffs will apply only to the copper content of products and won’t stack with other existing tariffs, according to the administration’s announcement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.