The direction of U.S. interest rates and the expansion of global power infrastructure investment are emerging as key variables for the wire and cable industry. Following the expansion of artificial intelligence (AI) data centers and power grids, moves toward the commercialization of next-generation nuclear power plants are also taking concrete shape, drawing attention to the mid- to long-term investment environment surrounding the power infrastructure industry. Daehan Electric, a South Korean wire and cable maker, is also drawing attention amid these industry trends.

■ U.S. Interest Rates and Copper Prices: Key Variables for the Wire and Cable Industry

The market views U.S. interest rate trends as a factor that could affect power infrastructure investment and commodity prices. If interest rates stabilize at lower levels, the financial cost burden on long-term infrastructure projects such as power plants and transmission and distribution networks, which require large-scale funding, could ease. Conversely, if high interest rates persist for an extended period, project investment costs and financing costs could rise, potentially weighing on the pace of new business development.

The wire and cable industry also points to the price of copper, a key raw material, as a variable. Analysts note that changes in U.S. monetary policy can affect the value of the dollar and capital flows in the global commodity market, so interest rate direction and copper price movements should be monitored together.

■ TerraPower and HDEC Sign Agreement on Commercializing Natrium Reactors... EPC Participation in Up to 8 Units

Amid this, moves to commercialize next-generation nuclear power are accelerating in the United States. Following a meeting held in Seoul, TerraPower established a basic agreement with HDEC to support the commercialization of its Natrium reactors. The key is to build a system that moves beyond the reactor technology development stage to efficiently pursue actual construction and commercialization.

Under the agreement, HDEC is set to participate as the contractor responsible for engineering, procurement, and construction (EPC) in up to eight Natrium reactor projects. The two parties plan to establish guarantee systems for construction costs and performance to enhance the business predictability of the projects and improve conditions for raising the private capital needed for large-scale nuclear projects. They will also cooperate to improve efficiency in the design and construction processes, reduce cost burdens, and stabilize the supply chain. Based on this, the goal is to expand the supply base for Natrium reactors to multiple regions within the United States as well as some overseas markets, accelerating the timeline for commercial operation.

■ Potential for Expanded Power Infrastructure Investment... Direct Order Linkage Is a Separate Matter

If next-generation nuclear projects expand into the actual construction phase, investment in infrastructure needed to deliver power from generation sites to end users — such as transmission networks, substation equipment, and cables — could become increasingly important over the mid to long term, in addition to the power generation facilities themselves. However, whether individual nuclear projects translate directly into orders for a specific wire and cable maker is a separate matter.

Daehan Electric is a wire and cable manufacturer producing power and communication cables, among other products. Accordingly, whether U.S. interest rates decline, the expansion of global grid investment, and changes in copper prices are cited as key variables that will shape the business environment of the wire and cable industry. In particular, the simultaneous expansion of AI data centers, replacement of aging power grids, and construction of new power generation facilities are heightening the importance of power infrastructure worldwide. If next-generation nuclear power also enters the commercialization stage, investment in power generation and transmission and distribution facilities overall could expand further.

However, the materials provided do not confirm that Daehan Electric is directly participating in the agreement between TerraPower and HDEC or supplying related products. Therefore, rather than directly linking specific projects to Daehan Electric, it is necessary to focus on the impact of U.S. interest rates, commodity prices, and global power generation and transmission/distribution infrastructure investment on the wire and cable industry.

[This article was written with AI assistance. It is investment reference information based on publicly available market materials and does not recommend buying or selling any particular stock. Investment decisions and the responsibility arising from them rest with the investor.]