Price of copper and copper products rose owing to shortage of the metal on the back of shut-down of the two largest manufacturing plants in the country.
While Hindalco stopped operation at its Birla smelter recently for routine maintenance, a plant of Sterlite Industries was shut on March 30 after local residents complained of emissions that led to breathing difficulties.
The Sterlite and Birla smelters account for about 90 percent of India's total copper output of 690,000 tonne.
Over half of the country's annual consumption of 610,000 tonne copper is accounted for by the telecom and electrical sectors.
Following this, firms such as Finolex Cables, who use copper extensively, are facing severe shortage of the raw material. Copper makes up about 80 percent of the raw material costs for cable manufacturers such as Finolex and Precision.
Premiums for the purest form of copper have doubled since the Sterlite shutdown, while imports have also doubled to about 8,000 tonne a month from countries like Russia, industry sources said.
Since the closure of the Sterlite smelter, premiums on copper rods have shot up from $165 to about $290 per tonne, and might go up to $350 per tonne, a trader with a Mumbai-listed metals trading firm said.