Rising Copper Costs Likely to Push Air Conditioner Prices Higher

Rising Copper Costs Likely to Push Air Conditioner Prices Higher

India: Consumers planning to purchase air conditioners may face higher prices as copper costs have increased in recent months, raising input expenses for manufacturers. Copper prices recently exceeded USD 12,000 per tonne (EUR 11,000 per tonne), according to market data, adding pressure across categories that rely heavily on the metal. In air conditioners, copper is a key material used in components such as coils and motors, making manufacturers sensitive to global price movements. As most producer's source copper through a combination of domestic supply and imports, international price trends are directly reflected in local production costs.

Industry executives indicate that rising copper prices, along with recent regulatory-related cost changes, have increased input costs in the air conditioner segment. Companies report that this has resulted in cost increases of several percentage points, which are expected to be passed on to consumers through higher retail prices. Manufacturers note that substituting copper with alternative materials is limited, particularly for critical components, leading to an expectation of price adjustments across newly produced air conditioning units.

Source: Economic Times