Copper, Aluminium Price Surge May Raise Costs of ACs and Kitchenware

New Delhi, 3 January: The rising prices of metals like copper, aluminium, and nickel are expected to impact the cost of products widely used in air conditioners, bathroom fittings, and kitchenware.

On the international market, aluminium prices have crossed $3,000 per tonne, marking the highest in three years. Copper rates have also reached an all-time high, surpassing $12,000 per tonne.

Several reports indicate that the sharper-than-expected increase in prices, particularly of copper, has raised input costs for many manufacturers. Unable to bear the additional burden, these companies may raise prices of air conditioners, kitchen appliances, bathroom fittings, and cookware.

On the Multi Commodity Exchange (MCX), copper prices recently touched ₹1,300 per kilogram. To maintain margins, many manufacturers plan to increase prices by 5-8 percent.

Companies producing bathroom ware are also under pressure, as prices of brass, a copper-based metal, have increased in double digits since the start of the financial year.

The rise in aluminium prices reflects structural supply challenges such as smelting restrictions in China and reduced production in Europe due to higher electricity costs. At the same time, long-term demand remains strong from construction, renewable energy, and infrastructure projects.

Amid recurring supply disruptions, copper recorded its largest annual gain since 2009. Mining accidents in Indonesia, Chile, and the Democratic Republic of Congo, along with worker strikes at a major Chilean mine, have reduced availability. Meanwhile, trade uncertainties have accelerated shipments from the US.

Reports also highlight that nickel prices have risen following supply concerns caused by production cut plans from Indonesia, the world’s largest producer, and temporary suspension at a PT Vale Indonesia mine.

The surge is not limited to base metals; precious metals like gold and silver have also seen significant gains. In 2025, gold delivered returns of about 65 percent, while silver returned nearly 145 percent.

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ABS/