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. 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. With some equipment requiring copper for a major share of material consumption, the spike is cascading into higher production costs and disrupted pricing.“A key concern is price volatility between order placement and actual production, making it difficult to quote rates or accept large orders,” he said. Copper prices, earlier marked by periodic fluctuations, have been rising almost daily in recent months, with no meaningful correction this year. 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.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. 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.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.Eight associations under the Joint Council Associations of Coimbatore have urged the Centre and Tamil Nadu govt to rein in spiralling input costs squeezing MSMEs, citing steep increases in fuel and metals including steel, pig iron, aluminium and copper. They have sought a steel price monitoring committee to check hoarding and cartelisation, withdrawal of import and safeguard duties on steel till March 2027, easier imports of copper and aluminium scrap, and steps to access Organisation for Economic Co-operation and Development supplies. They have urged the Tamil Nadu govt to explore reopening the Sterlite Copper plant in Tuticorin, subject to compliance with environmental, safety and regulatory norms.
