Waiting for Diwali to buy that Smart TV for home? Or that cool smartphone for your sibling?
Maybe har sabar ka fal meetha nai hota hai (Patience is not always a virtue).
Why? Read on.
Consumer electronics use a lot of commodities. The price of these commodities (such as Copper) has been shooting through the roof. Of course, the manufacturers won’t bear all the brunt!
So they have been slowly (and steadily) increasing the prices this year. And cleverly so, before the auspicious festive days!Â
Yet again, these prices are set to rise. Why?
Take a look at this chart from the London Metal Exchange that tracks the prices of 6 metals:
See that steep rise just within a year? In fact, the prices are almost at a nine-year high!Â
Covid could not make much of a dent in manufacturing activities, especially in China. The supply of metals on the other hand took a big hit because of disruptions in mining operations.Â
Further, the shipping operations were also disturbed leading to an increase in freight charges. They are in fact at a ten-year high. Higher freight charges meant an increase in the transportation cost of metals.Â
While the supply of metals is a problem, the demand continues to grow. As clean and green energy is entering the mainstream, metals are gaining popularity. For instance, Lithium and Copper are used extensively in manufacturing electric vehicles.
Now the big question: How long should this price surge last?
It is expected that industrial metal prices will be up by 50% in 2021 (Crazy, no?).Â
But Covid is not going to last forever. So the production challenges should be solved and prices should fall by 4% in 2022.Â
If there is one thing that we have learnt in the past couple years, it is that nothing is certain,Â
What if the demand for metals goes up even higher?
This could impact the way the prices of your electronic goods move too. Knowing a little bit of what’s going around you could save you money, no?
Know anyone planning to make big electronic purchases? Share this piece with them on Whatsapp or Twitter. Hurry!
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Sorry to ask but is it my imagination or the articles becoming shorter? (didn't mean to sound rude)