Planning to upgrade your home with a new air conditioner, stylish bath fittings, or premium kitchenware in 2025? You might need to budget more, as a sharp rally in the price of copper is set to make a wide range of household products more expensive. The red metal, a crucial component in everything from motor windings to plumbing fixtures, has scaled record highs, forcing manufacturers to pass on the increased costs to consumers.
The Metallic Surge: Copper Touches Record Highs
Copper prices have been on a relentless upward climb. Data from Bloomberg reveals that the metal surpassed $12,000 per tonne last month, marking its most significant annual gain since 2009. This global trend is reflected in the Indian markets as well. On the Multi Commodity Exchange (MCX), copper prices touched nearly ₹1,300 per kilogram recently, reflecting an increase of over 6% in a short period.
Analysts from Goldman Sachs point to a confluence of factors driving this rally. The decline in interest rates, a weaker US dollar, and improved expectations for China's economic growth have fueled demand. Additionally, supply disruptions, policy changes, and massive investments in artificial intelligence infrastructure, which requires substantial amounts of copper, have further tightened the market. The financial firm forecasts the London Metals Exchange (LME) copper price to average $10,710 per tonne in the first half of 2026.
Industry Pinch: Margins Under Pressure, Price Hikes Inevitable
The ripple effect of this commodity boom is being felt acutely by manufacturers of consumer durables, cookware, and bathware. For these companies, copper and its alloys like brass form a significant part of their raw material costs.
Ravi Saxena, CEO and founder of cookware brand Wonderchef, confirmed the impending price adjustments. "With copper and aluminium prices hitting record highs, we will increase prices by 5-7% in the appliance and cookware category," he stated. He emphasized that copper is vital for popular appliances like nutri-blenders and high-performance mixer grinders, calling it the 'gold standard' for key components such as motors. While companies explore cheaper alternatives where feasible, for critical parts, substituting copper is often not a viable option for maintaining performance and quality.
The bathware industry is facing similar challenges. Shrivatsa Somany, head of Somany Bathware, highlighted that brass, a copper-zinc alloy, is a key material for the sector. "Since the start of the financial year, the price of brass has risen by 15-18% and our suppliers have raised their rates," he explained. He noted that companies cannot absorb such high costs indefinitely. The industry has already implemented a price increase of about 12% in the first two quarters of this financial year, with more likely on the horizon.
What This Means for Consumers
The direct impact will be felt at the retail counter. The air conditioner segment is poised for a notable price revision. Kamal Nandi, business head and EVP of appliances at Godrej Enterprises Group, provided specific figures, stating, "The overall impact on AC category input cost for us has gone up by 8-10%. Currently, all newly produced ACs shall have the cost impact of copper as well as energy table change cost, which will lead to a 7-8% increase in prices of ACs."
In essence, the record-breaking rally in copper prices, driven by global macroeconomic factors and sectoral demand, is translating into higher bills for Indian consumers looking to purchase essential and aesthetic home products. The price hikes across appliances, cookware, and bathware are a direct consequence of manufacturers protecting their margins in the face of soaring input costs.
