Finance
Prysmian shares rise as Italian cable maker seen as winner amid US copper tariffs
Published by Global Banking & Finance Review®
Posted on July 9, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 9, 2025
2 min readLast updated: January 23, 2026
Prysmian shares rose 4% as US copper tariffs favor its local sourcing strategy, enhancing its market position.
MILAN (Reuters) -Prysmian shares rose as much as 4% on Wednesday on expectations the world's largest cable maker's large U.S. business could benefit from U.S. tariffs on copper, as it sources the metal locally and should be able to pass on higher prices to customers.
U.S. President Donald Trump on Tuesday said he would impose new levies, including a 50% tariff on imported copper, broadening a trade war that is rattling markets worldwide.
"We constantly monitor potential effects on metals coming from tariffs and as a result we align prices accordingly," a spokesman of Italy's Prysmian said.
Copper is a key element used in the production of a wide variety of cables including for power grids, construction, industrial uses and high-voltage transmission.
As a group, Milan-based Prysmian is the largest single buyer of copper worldwide, and the leader in the U.S. cable sector.
The Italian firm has the United States as its largest market, where last year it acquired Texas-based Encore Wire in a $4.2 billion deal.
"We highlight Prysmian as a relative tariff winner," analysts at Citi said in a note, pointing Prysmian's U.S. low-voltage business sources its raw copper from a Freeport mine in Arizona and operates its own copper rod mill in Texas rather than buying copper rod from suppliers.
"As such, its domestic, vertically integrated set-up in copper gives it a competitive edge compared to smaller players in our view," they said.
By 1000 GMT Prysmian shares were up 3.9%, among the best performers among Italy's blue chips.
Italian broker Equita said in a note tariffs should support copper prices and strengthen margins in the U.S. low voltage business, net of effects on demand.
The Prysmian spokesman said the company still needed to assess the final set-up of the new tariff scheme but it was well positioned thanks to its vertical integration in the copper space in the United States.
"Copper, and aluminium, are central to the energy objectives of the (U.S.) administration and we are committed to help support the development of local industrial reshoring, the development of AI through data centres and the strengthening of the U.S. power grid thanks to our leadership position in the market".
(Reporting by Giulio Piovaccari, Editing by Louise Heavens)
Prysmian is expected to benefit from U.S. tariffs on copper, as its large U.S. business sources raw copper domestically, providing a competitive edge.
Prysmian shares rose as much as 4% on Wednesday following the announcement of new U.S. tariffs on copper.
Copper is a key element in the production of various cables used for power grids, construction, and industrial applications, making it crucial for Prysmian's operations.
Analysts at Citi highlighted Prysmian as a 'relative tariff winner' due to its domestic, vertically integrated setup in copper, which gives it a competitive edge over smaller players.
Last year, Prysmian acquired Texas-based Encore Wire in a deal worth $4.2 billion, solidifying its position in the U.S. market.
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