After a significant rise in gold and silver prices, the impact of global economic uncertainty is now being felt across industrial metals. Prices of copper, brass, and aluminium have surged sharply, increasing production costs and placing substantial financial pressure on multiple industries.
According to recent market trends, copper prices have jumped by nearly 40%, while brass and aluminium prices have risen by approximately 16% and 20% respectively. This sharp increase is being driven by global geopolitical instability, US-China trade tensions, and the weakening of the Indian rupee against the US dollar.
Global Factors Driving Metal Price Increases :
Several international factors are contributing to the ongoing rise in metal prices.
Global geopolitical instability, affecting supply chains
Trade tensions between the United States and China, disrupting global trade flows
Depreciation of the Indian rupee against the US dollar, increasing import costs
Rising global demand for industrial and precious metals
These factors initially pushed up gold and silver prices, and the effect has now extended to key industrial metals such as copper, brass, and aluminium.
Copper Prices Record a 40% Annual Rise :
Over the past year, copper prices have increased at a record pace, registering a rise of nearly 40%. Copper plays a critical role in industries such as electrical equipment, construction, and automobiles, making its price surge particularly impactful.
The sharp rise in copper prices has been fueled by :
- Increased global demand
- Supply constraints
- Higher raw material and production costs
Brass and Aluminium Prices Continue to Climb :
Alongside copper, brass and aluminium prices have also shown consistent upward momentum**. Brass prices have risen by around *16%*, while aluminium prices have climbed by approximately 20%.
Since aluminium is widely used across manufacturing sectors, the increase in its price is directly affecting overall production costs, particularly for small and medium-scale industries.
Impact on the Gold and Silver Jewellery Industry :
India’s gold and silver jewellery industry employs nearly 800,000 people directly and indirectly**. In addition, millions of artisans and workers are engaged in various small-scale and allied industries connected to jewellery manufacturing.
Although domestic and international demand for jewellery remains strong, rising raw material costs have significantly increased production expenses. As a result, artisans and small manufacturers are facing growing financial strain.
Industries Most Affected by the Price Surge :
Electrical Industry :
Copper is a key component in electrical wiring and equipment. The sharp rise in copper prices has increased costs for manufacturers of electrical goods and infrastructure projects.
Construction Sector :
Both copper and aluminium are widely used in construction. Rising prices are pushing up project costs and impacting profit margins.
Automobile Industry :
Copper and aluminium are essential materials in vehicle manufacturing. Higher metal prices may lead to increased vehicle production costs and, eventually, higher prices for consumers.
Copper Prices Hit Record Highs in the Futures Market :
Copper prices in the Indian futures market have reached record levels, reflecting strong demand and limited supply. While this has attracted investor attention, it has also intensified cost pressures on manufacturers.
At the same time, rising prices of brass and aluminium are placing small-scale industries under severe stress, reducing profitability and increasing operational challenges.
If metal prices continue to rise :
- Jewellery, electrical appliances, and vehicle components may become more expensive
- Higher production costs could be passed on to consumers
- Small manufacturers may struggle to maintain margins
- Employment in allied industries could face pressure
After gold and silver, the sharp rise in copper, brass, and aluminium prices has created new challenges for Indian industries. Global uncertainty, currency fluctuations, and supply-demand imbalances are driving costs higher across the manufacturing sector.
With industries, artisans, and consumers all feeling the impact, close monitoring of global economic developments and commodity markets will be crucial in the coming months.