Copper and Aluminium Price Surge May Raise AC and Kitchenware Costs

New Delhi, 3 January: A sharp rise in the prices of metals like copper, aluminium, and nickel is likely to impact the cost of appliances such as air conditioners, bathroom fittings, and kitchenware.

Internationally, aluminium prices have crossed $3,000 per tonne, marking the highest levels in the past three years. Copper prices have reached an all-time high, exceeding $12,000 per tonne.

Several reports indicate that the unexpected surge in metal prices, especially copper, has increased input costs for many manufacturers. Unable to absorb these extra expenses, producers are now considering passing on the costs to consumers, which could lead to price hikes in ACs, kitchen equipment, 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 raise product prices by 5-8 percent.

Companies producing bathroom ware are also under pressure due to double-digit price increases in brass, a copper-based metal, since the start of the financial year.

The rise in aluminium prices reflects supply challenges caused by a ban on smelting capacity in China and reduced production in Europe due to higher electricity costs. Meanwhile, long-term demand remains strong from construction, renewable energy, and infrastructure projects.

Copper has recorded its largest annual price increase since 2009 amid repeated supply disruptions. Mining accidents in Indonesia, Chile, and the Democratic Republic of Congo, along with strikes at a major Chilean mine, have reduced availability. Additionally, trade uncertainties have accelerated shipments to the United States.

Reports also note that nickel prices have risen following Indonesia’s plans to reduce production and a temporary halt at a PT Well Indonesia mine, raising short-term supply concerns.

The surge is not limited to copper, aluminium, and nickel; precious metals like gold and silver have also seen significant gains. In 2025, gold returned around 65 percent, while silver offered approximately 145 percent returns.

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ABS/