COIMBATORE: Unchecked copper price rises have triggered fresh turbulence for Coimbatore’s micro, small and medium enterprises (MSMEs), where the metal remains a key input across engineering, machinery and allied manufacturing.
J Arun Kumar, a city-based copper alloy products manufacturer, has said copper prices have doubled within a year, climbing from around Rs 750 per kg to about Rs 1,500 per kg. Input costs that were around Rs 500 have moved to nearly Rs 1,000, squeezing margins, weakening sales and increasing debt burden, according to him.
The surge is hurting sectors ranging from sugar mill machinery and paper mills to gear manufacturers and the railways, where copper is used extensively in components and assemblies, according to him. “A key concern is price volatility between order placement and actual production, making it difficult to quote rates or accept large orders,” he said. Indian Chamber of Commerce and Industry vice-president S Natarajan has said not only manufacturers but traders are also impacted, as multiple inputs go into a single product. Devakumar, president of Chinnavedampatti Industrial Association, has said some units are attempting partial substitution by blending copper with zinc, lead and tin, but this lowers quality and reduces machine life, adding to losses.
With some equipment requiring copper for a major share of material consumption, the spike is cascading into higher production costs and disrupted pricing. MSMEs are bearing the brunt, with some units forced to shift to alternate lines of business. They have urged the Centre to stabilise copper prices on a longer-term basis.
Copper prices, earlier marked by periodic fluctuations, have been rising almost daily in recent months, with no meaningful correction this year.