Indian AC Manufacturers Shift Towards Aluminium Amid Rising Copper Costs
- brg_news_room
- 12 hours ago
- 1 min read
India: Air-conditioning and refrigeration manufacturers in India are shifting towards aluminium as rising copper prices and updated energy efficiency requirements increase production costs. Industry representatives indicated that copper prices have risen by nearly 18 per cent, driven in part by higher global demand, including from data centres. Prices have increased from around USD 800 (EUR 736) to approximately USD 1,400 (EUR 1,288), adding pressure to input costs. At the same time, mandatory revisions to energy efficiency standards, which occur every two years, have required manufacturers to upgrade product specifications, further contributing to higher overall costs.
Although the Government reduced GST on air-conditioners from 28 per cent to 18 per cent, product prices increased from 1 January due to these cost pressures. The combination of higher raw material prices and compliance with revised efficiency norms has led manufacturers to consider aluminium as an alternative material in order to manage rising expenses and maintain production viability.
Source: AL Circle
