Copper futures surged to an all-time high of $14,779 per tonne on September 8 and continue to trade above $14,000. This rise is squeezing profit margins across the EV, electrical, consumer electronics, appliance, and engineering goods sectors.The rally is driven by strong demand, tight global mine and concentrate supplies, and U.S. buyers stocking up ahead of possible tariffs on refined copper.
India, which imports about 85% of its copper requirements, is particularly vulnerable to higher international prices, freight costs, and supply disruptions. Electrical wire manufacturers such as Finolex Cables, Polycab, and Havells have already raised prices to offset higher input costs. EV makers also face significant exposure, as EVs use around 3–4% more copper than conventional vehicles.
Aluminium can only partially substitute copper due to its lower conductivity. Consumer appliance, electronics, and engineering manufacturers are monitoring costs carefully and considering calibrated price adjustments. The tightening supply environment, combined with demand from power infrastructure, electrification, and data centres, is likely to keep costs elevated, prompting companies to reassess pricing, sourcing, and supply-chain strategies.
