Copper up 40%: What it means for AC and appliance prices?

Synopsis: Copper prices are up nearly 40% since October. At MCX, copper is trading at Rs. 1,332/kg, forcing consumer durable companies to hike appliance prices by 5–8% amid higher input costs and supply-demand pressures.

Copper prices are rising due to a combination of strong global demand and supply-side constraints. Expectations of economic recovery, increased infrastructure spending, and higher consumption from sectors like renewable energy, electric vehicles, and data centres have pushed prices higher.

Copper futures on MCX are currently trading at Rs. 1,332.85 per kg. The contract touched a high of Rs. 1,392.95 on December 29. Over the past three months, prices have surged 31%, with a 21% gain recorded in the last month alone.

Consumer durable companies hike prices as copper surges 

Consumer durable companies are increasing the prices of everyday home appliances like air conditioners (ACs), kitchen appliances, and cookware. The main reason behind this is a sharp rise in the price of copper, a key raw material used in many of these products. Since copper is widely used in AC coils, motors, wiring, and cookware, any increase in its price directly affects manufacturing costs.

Copper prices have gone up by around 40% since October 2025. This is a very steep increase in a short time. When raw material costs rise so much, companies either absorb the loss (which hurts profits) or pass it on to customers. Most companies are now choosing to raise product prices to protect their margins.

As a result, some consumer durable companies have already increased prices by 5 to 8% across categories like ACs, kitchen appliances, and cookware. Wonderchef has increased prices on about 80% of its products by 5–7% starting from January 1, 2026. Similarly, Godrej Appliances plans to raise prices of all newly manufactured ACs by 7 to 8%.

To reduce costs, smaller brands are trying to find alternatives. One such move is replacing copper with aluminium in motors and other components. Aluminium is cheaper than copper, but it may not always perform as well or last as long, which could affect product efficiency or durability over time.

For consumers, this means home appliances are becoming more expensive, especially ACs. If copper prices stay high, further price hikes are possible. People planning to buy appliances may want to factor in these increases, while budget buyers might see more products using alternative materials to keep prices lower.

Reason for the surge 

Global factors have pushed up the prices of copper and other industrial metals like aluminium and lithium. Money has become cheaper to borrow because of reduction in interest rates, and the US dollar has weakened, which usually makes commodities more attractive for investors. At the same time, there is growing hope that China’s economy will recover and grow faster, increasing demand for metals used in manufacturing and infrastructure.

On the supply side, some disruptions in metal production, along with government policy changes, have tightened availability. In addition, heavy spending on artificial intelligence, data centres, and new technologies has sharply increased the demand for metals, as these projects require large amounts of copper and aluminium for wiring and equipment.

According to analysts at Goldman Sachs, all these factors together have driven the recent rally in metal prices. The brokerage expects copper prices on the London Metal Exchange to remain high, averaging around $10,710 per tonne in the first half of 2026, indicating that elevated prices may continue for some time.

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