On October 3, 2025, copper reached an all-time high of ₹972.55 per kilogram in the Indian market. The surge was primarily driven by a global supply crisis, rising demand in China and India, and speculative trading. This rally is expected to impact the electronics, auto, agricultural equipment, and construction sectors.
Copper Price: In the Indian commodity market on Friday, October 3, 2025, copper made history by touching the ₹972.55 per kilogram mark. The primary reasons attributed to this surge include a global supply crisis, a metal supply ban on Russia, increasing demand from infrastructure and electric vehicle projects in China and India, and significant buying by large trading houses. This rally is expected to affect the electricals, auto, and construction sectors, potentially leading to a hike in prices.
Why Did Copper Prices Rise?
Experts state that three major factors contributed to this surge.
- Global Supply Crisis: Mining activities have been disrupted at Indonesia's renowned Grasberg Mines. Additionally, the United States and the United Kingdom have imposed restrictions on copper supplies originating from Russia. This reduced the availability of copper in the global market, leading to a sharp rise in prices.
- Increasing Demand: Infrastructure, electric vehicle, renewable energy, and decarbonization projects are rapidly expanding in countries like China and India. All these sectors have a high demand for copper. From electric vehicle batteries to solar panels and cabling, the use of copper is increasing everywhere.
- Speculative Trading: Large trading houses and funds engaged in significant buying of copper. The active participation of these investors further fueled the market rally, pushing prices to record levels.
International Market Overview
The surge in copper prices was not limited to India. On the LME (London Metal Exchange), copper climbed to $10,028 per ton. Meanwhile, on Comex, it reached $4.88 per pound. These figures indicate a significant gap between demand and supply for copper in the global market as well. Prices in the international market remain b due to the supply crisis and increasing demand.
Impact on Industry and Consumers
This rally in copper prices will have a direct impact on several sectors.
- Electricals and Electronics: Prices of wires, cables, and circuits will increase.
- Auto and EV Sector: The cost of electric vehicle batteries and motor parts may rise.
- Agricultural Equipment: Equipment such as tractors and pump sets could become more expensive.
- Infrastructure Projects: Construction costs are likely to surge.
Price increases in these sectors could become a concern for both investors and manufacturers.
Copper Surge: Impact of Supply Crisis and Strong Demand
Experts believe that if supply issues persist and demand remains b, the upward trend in copper prices could continue. However, speculative trading might also increase market volatility. Investors and the industry will need to remain cautious in this situation.
Copper's record surge has also demonstrated that the balance between supply and demand directly impacts prices in the commodity market. In the coming months, it will be seen how long the global supply crisis continues and whether increasing demand drives prices even higher.
