Copper Prices Reach Record Highs, Squeezing Manufacturers' Margins

Copper prices have reached record highs, putting pressure on India's manufacturing sector. Companies like Maruti Suzuki and Tata Motors are being forced to raise their prices due to rising costs of raw materials.

The global market has seen copper prices reach a record high, with the London Metal Exchange recording $14,500 per ton in recent times. The increasing demand for renewable energy and AI infrastructure has put pressure on copper supplies, affecting the automotive and electronics sectors.

Copper is essential for manufacturing batteries, motors, and wiring in electric vehicles (EVs). Companies producing EVs are therefore highly sensitive to price changes. They need to balance their margins while keeping EV prices competitive with petrol-diesel cars.

The appliance market is also feeling the pinch. Companies that produce air conditioners and refrigerators use copper for heat exchangers and condensers. If they don't raise prices, their margins will suffer; but if they do, it may deter customers during the festival season.