The Indian Primary Copper Producers Association (IPCPA) has warned that copper smelters are facing severe financial pressure as treatment and refining charges (TC/RCs) have plunged to unprecedented negative levels of about -₹1,300 per tonne. According to IPCPA, these charges, which smelters typically earn for processing copper concentrates, have fallen dramatically from positive levels of around $300-400 per tonne. The industry body represents leading copper producers in India, including Hindalco Industries, Hindustan Copper Limited, Adani Kutch Copper and Vedanta's Sterlite Copper.
Copper prices have surged to unprecedented levels, with the London Metal Exchange (LME) price touching a record $14,737 per tonne in September 2026, representing a nearly 50 per cent increase over the past year. As reported by IPCPA, copper's price rally has been driven by expectations of US tariffs, tightening mine supply and significant shifts in global inventories. The sharp decline in charges underscores the tightening availability of copper concentrates as mining output remains constrained while smelting capacity continues to expand, particularly in China. Recent market developments show Brent crude climbing above $100 for the first time since 24 July as fighting involving the US and Iran intensified, adding another layer of pressure on commodity markets.
The surge in copper prices is creating significant cost pressures across multiple industries, with Maruti Suzuki facing an estimated ₹204 crore of incremental monthly exposure, Tata Motors ₹171 crore and Mahindra & Mahindra ₹110 crore according to industry estimates. The increase translates roughly into ₹10,000-13,000 of additional underlying copper cost for an ICE car, more than ₹40,000 for some electric cars and ₹1.27-1.52 lakh for an electric bus. For white goods, corresponding increases could reach ₹3,300-4,300 for a 1.5-tonne split air conditioner and ₹1,300-1,800 for a double-door refrigerator. In the agriculture sector, copper sulphate prices have increased over six times from ₹80 a kg to ₹500, while construction sector costs have risen over 12% between April and September, translating into an estimated 0.75-1% impact on overall construction costs.
Manufacturers are adapting to the price surge through various strategies, with some companies indicating price hikes within short spans. Haier Appliances India has implemented 10-12% price increases in the past few months and may take a marginal 2% hike in October. Avneesh Singh Marwah from SPPL noted that all 'A-Class components' including copper have seen surge in prices, leading to huge margin pressure. Some companies are switching to alternatives, with Swelect Energy Systems shifting many components to aluminium from copper, though the company remains completely dependent on imports for high-grade copper. The US Department of Commerce's report on potential copper import tariffs is overdue by nearly two months, though markets continue to price in the possibility of trade restrictions.
The Indian Primary Copper Producers Association (IPCPA) emphasized that the copper market is facing structural constraints rather than temporary inventory imbalances. The divergence between mine supply and smelting capacity is creating a fundamental mismatch that is reshaping market dynamics. Copper is increasingly viewed as a strategic industrial commodity because of its extensive use in power grids, electric vehicles, renewable energy, construction and other infrastructure associated with electrification and the energy transition. IPCPA stressed the need to address this structural gap between copper mining and processing capacity as demand for the metal continues to rise, with the association noting that the current market developments highlight the urgency of addressing these supply-demand imbalances.
