Rising aluminium and copper prices squeeze power-sector costs as LME aluminium tops $3,800 a tonne
AI Market Summary
Aluminium and copper prices have surged (LME aluminium above $3,800/t; copper above $13,000–14,000/t), raising input costs for power equipment and renewables buildouts. With aluminium representing a dominant share of raw material costs in cables/transformers, manufacturers face margin compression and buyers may delay tenders. Fixed-tariff TBCB projects lack escalation clauses, increasing risk of procurement deferrals and slower execution in transmission infrastructure.
Impact level
● Medium
Affected assets
NCCOALUMINIUM2USD/USDT-1.95%
AI Insight · NCCOALUMINIUM2USD/USDTAI Insight
▼ Bearish
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Aluminium on the London Metal Exchange has climbed above $3,800 per tonne, up 30–35% from 2024, while copper has moved past $14,000 per tonne, about 28% higher than the FY24 average. Electrical power equipment accounts for about 48% of aluminium demand, and wind and solar projects also consume large amounts of copper and aluminium. With India adding over 30 gigawatt (Gw) of solar and 6 Gw of wind annually, fixed-tariff TBCB projects have limited ability to pass through higher input costs, raising the risk of margin pressure and procurement delays.
