South Korea cable makers gain on copper and AI demand

For wire and cable makers, higher copper prices are usually a net positive for top-line growth because contract pricing often rises with raw-material costs. Companies also use escalation clauses in long-term deals and reprice new projects at higher copper levels, meaning the same shipment can generate more won in sales.

The bigger driver for investors, though, is demand. AI data centers are consuming far more electricity, and utilities are replacing aging grids at the same time, pushing up orders for transmission and distribution cables as well as wiring used inside data facilities.

That is showing up in order backlogs. LS Cable’s backlog reached 7.83 trillion won at the end of June, up 38% from a year earlier, while Taihan Electric Wire’s backlog rose to 4.06 trillion won from 2.89 trillion won over the same period.

The earnings outlook reflects that momentum. Market forecasts compiled by FnGuide call for Taihan Electric Wire’s 2026 revenue to rise 21% to 4.40 trillion won and operating profit to jump 78% to 229.3 billion won. For LS, which owns 92.6% of LS Cable, revenue is seen climbing 30% to 41.56 trillion won and operating profit nearly doubling to 2.05 trillion won.

Investors are still weighing the flip side: copper that climbs too far can squeeze working capital because manufacturers must buy metal before getting paid, and steep price increases can delay projects if customers push back. Companies are also hedging with copper futures and expanding capacity, including LS Cable’s under-construction submarine cable plant in Virginia and Taihan Electric Wire’s new 400-kV cable factory in Vietnam.

The trade now is whether AI power demand can keep outrunning raw-material costs. For the cable sector, that will likely decide whether the third-quarter boost turns into a longer earnings cycle.