Copper prices have doubled in a year, putting Coimbatore’s engineering and manufacturing MSMEs under pressure as firms struggle to price orders, protect margins and maintain production, industry representatives have said.
J Arun Kumar, a Coimbatore-based manufacturer of copper alloy products, said the price of copper had risen from around Rs 750 per kg to about Rs 1,500 per kg within a year. The increase is affecting businesses supplying sugar mill machinery, paper mills, gear manufacturers and the railways, where copper is used in components and assemblies.
Manufacturers said the problem is not limited to the higher input cost. Frequent price movements between the time an order is placed and production begins are making it difficult for smaller units to quote prices or accept large orders. Kumar said copper prices had been rising almost daily in recent months and had not seen a meaningful correction this year.
The impact is particularly severe in equipment where copper accounts for a substantial share of the material used. Higher costs are being passed through the production chain, but smaller firms face difficulty revising prices after orders have been confirmed. The resulting uncertainty is affecting sales and weakening the ability of units to plan production.
S Natarajan, vice-president of the Indian Chamber of Commerce and Industry, said manufacturers and traders were both being affected because several inputs are used in a single product. According to him, costs that were earlier around Rs 500 had increased to nearly Rs 1,000, squeezing margins and increasing the debt burden on businesses.
Some units are attempting partial substitution by blending copper with zinc, lead and tin. Devakumar, president of the Chinnavedampatti Industrial Association, said the approach reduced product quality and shortened machine life, adding to losses for businesses and their customers.
The pressure extends beyond copper. Eight associations under the Joint Council Associations of Coimbatore have said fuel and metal costs, including steel, pig iron, aluminium and copper, are squeezing MSMEs across the industrial cluster. The associations have urged the Centre and the Tamil Nadu government to take steps to control input costs.
Their demands include the creation of a steel price monitoring committee to examine alleged hoarding and cartelisation, withdrawal of import and safeguard duties on steel until March 2027, and easier access to imported copper and aluminium scrap. They have also sought measures to access supplies from the Organisation for Economic Co-operation and Development.
The associations have asked the Tamil Nadu government to explore reopening the Sterlite Copper plant in Tuticorin, subject to environmental, safety and regulatory compliance. Their proposals now place the focus on whether central and state authorities will respond to the cost pressures affecting Coimbatore’s manufacturing base.
