Responsible copper sourcing and the supply gap

The copper market is balanced to slightly oversupplied today, and the supply gap is a medium- and long-term issue. S&P Global expects a deficit of 10 million metric tons by 2040, and Oliver Wyman expects a global copper shortage of 10% to 20% by 2030. For cable manufacturers and their customers, this changes what responsible copper sourcing means. Origin, traceability and environmental footprint now weigh as much as availability, and two levers secure supply over the long term: verified standards and recycling.

Nexans sets out its answer in a 2026 position paper on responsible copper sourcing. It rests on verified standards, recycling and partnerships across the value chain, and Nexans already applies it in its own operations.

The market is not short today: the International Copper Study Group (ICSG) forecasts a refined copper surplus of about 104,000 tons in 2026. Electricity demand and the acceleration of the digital economy are pushing copper demand up. S&P Global sees demand rising about 50% to 42 million metric tons by 2040, while global production peaks at 33 million metric tons in 2030. The International Energy Agency (IEA) projects primary supply 25% short of requirements in 2035. Copper, once treated as a lowly commodity, now sits at the center of the energy and digital transitions, and recycled copper will have to help fill the gap that opens.

The cable and electrification industries feel this pressure first. Aluminum solutions can substitute for copper in certain contexts, yet electrification as a whole remains reliant on copper. A lasting deficit could therefore slow the pace of electrification itself.

For Nexans, responsible copper sourcing combines two sources: primary (mined) copper and secondary (recycled) copper. The approach is built on the E3 model, which stands for Economy, Environment and Engagement and reflects the conviction that economic performance goes hand in hand with environmental and social progress. The model is part of the wider CSR strategy of the Group.

For primary copper, this means long-term partnerships with certified suppliers that apply recognized sustainability practices, including the OECD Due Diligence Guidance, the United Nations Global Compact and the standards of Veramark Assurance (formerly the Copper Mark). Nexans asks all partners to sign its CSR Charter and looks for credentials such as EcoVadis and Veramark Assurance, a global standard that covers 33 ESG criteria. Long-term contractual commitments and on-site audits help suppliers progress, including those at an early stage of their sustainability journey.

Standards also keep moving. Veramark Assurance reassesses its sites every three years, including the Nexans metallurgical facilities in Montreal, Canada and in Lens, France, so certification drives continuous improvement. Nexans received the label for responsible copper production in September 2023.

The shift from a linear copper supply chain to a circular, transparent and certified ecosystem rests on three actions.

Transparency on primary copper

Responsible sourcing starts with visibility into where primary copper comes from. Supplier charters, audits and recognized labels such as EcoVadis and Veramark Assurance give suppliers and customers shared references. Primary supply includes a large contract with KGHM for copper cathodes.

Collaboration across the value chain

The urban mine needs partners to reach scale. CableLoop is a recovery and recycling service launched in Europe with leading distributors of electrical products and solutions. Electricians and installers can drop off cable waste at local branches or request on-site collections, and Sonepar uses the service for its warehouse offcuts. Nexans recovered 880 tons in 2025 through this approach, and the material goes directly back into its foundries.

What does the industry need to do next?

The structural gap between copper supply and demand calls on the whole industry. Moving from a linear model to an integrated ecosystem approach is now necessary, and the position paper points to a new alliance between committed manufacturers, miners and distributors built on three commitments.

The first is to generalize third-party verified transparency, such as Veramark Assurance, so that ethical sourcing becomes a shared license to operate. The second is to recognize recycling as a key lever for mitigating copper scarcity and as a significant contributor to copper decarbonization. The third is to break down silos so that urban mines can be activated at scale. Circular projects such as NCCCR also help reduce carbon impact at competitive costs.

Nexans is ready to turn waste into a sovereign resource, and circularity will carry electrification forward.