Rally in industrial metals pushes household goods prices

by IANS |

New Delhi, Jan 3 (IANS) Industrial metals including copper, aluminium and nickel have surged sharply, due to tightening supply and robust demand. Aluminium climbed past $3,000 a tonne mark for the first time in over three years, while copper traded near all-time highs surging beyond $12,000 per tonne mark.

Many household appliance manufacturers struggled to absorb higher input costs which affected household budgets with copper?intensive goods such as air?conditioners, kitchen appliances, bath fittings and cookware facing higher costs.

Copper on the MCX recently touched Rs 1,300 per kg, up over 6 per cent. Manufacturers plan price increases of 5–8 per cent to protect margins, multiple reports said.

Bathware manufacturers face further pressure as brass, a copper-based material, saw double-digit price increases since the start of the financial year.

Aluminium gains reflect structural supply constraints such as caps on smelting capacity in China and reduced output in Europe amid persistently high power costs, even as long?term demand from construction, renewable energy and infrastructure projects remains high.

Copper recorded its biggest yearly gain since 2009 amid repeated supply disruptions. Mining accidents in Indonesia, Chile and the Democratic Republic of the Congo and labour unrest at a major Chilean mine have tightened availability, while trade uncertainties prompted accelerated shipments to the US.

Nickel also advanced after its world’s largest producer Indonesia, flagged plans to cut output and a temporary halt at a PT Vale Indonesia mine raised near?term supply concerns, reports said.

Falling interest rates, a weaker dollar and hopes for a China recovery have supported the rally. The robust rally signals a broader shift of investors' interest toward commodities from gold and silver. Further heavy spending on artificial intelligence and energy transition projects acts as tailwinds for the price surge.

Meanwhile, the Ministry of Mines implemented comprehensive policy reforms to modernise India’s mining ecosystem and strengthen mineral security, the government informed earlier this week.