Copper Price Hike Hits Indian Cable Stocks as Manufacturers Raise Prices

Indian wire and cable companies Polycab India, Finolex Cables, and RR Kabel have raised prices on various products to protect profitability amid rising copper costs.

Copper represents a significant portion of raw-material cost for these manufacturers. With sustained increases in copper prices affecting margins unless higher selling prices can be recovered, the latest price hikes demonstrate an attempt by companies to safeguard profitability.

However, investors are cautious about whether these price increases will be sufficient if copper prices remain elevated. Polycab and Finolex have implemented 3% price hikes, while RR Kabel has paused its proposed increase. KEI Industries, another major player in the sector, has not announced a price increase.

The competitive nature of the industry necessitates manufacturers to balance rising raw-material costs with pricing decisions that consider competitors' moves. New players like UltraTech's Ultravolt have entered the market, adding financial strength and potentially limiting cost pass-through for companies.