The handicraft industry in Moradabad, globally celebrated as the Brass City, is currently navigating a severe economic crunch due to soaring raw material prices. Brass ingots, which serve as the fundamental building block for all brass items manufactured in the region, have witnessed an unprecedented price escalation. Over the past twelve months, the steep rise in ingot rates has distressed local manufacturers, squeezed profit margins, and severely disrupted market supply chains.
Ingot Prices Jump Nearly 95 Percent in Twelve Months
Local brass trader Raghav Khanna highlighted that the cost of brass ingots has been steadily ascending to record highs. Comparing current rates with those from the previous year reveals an escalation of approximately 95 percent. A year ago, brass ingots were sold at around 500 rupees per kilogram, whereas today the price has surged to nearly 950 rupees per kilogram. This sharp increase in raw material costs has directly inflated the production expenses of finished brass products.
Global Conflicts and Rising Metal Costs Drive Up Supply Expenses
Multiple international and domestic factors are contributing to this steep price trend. Brass is produced by fusing copper and zinc together. Ongoing geopolitical conflicts across the globe have severely impacted the international supply chain and availability of these base metals, pushing their prices upward. Furthermore, rising labor charges, energy expenses, and secondary processing costs have added to the total manufacturing expense, resulting in significantly higher market rates for brass ingots.
Declining Customer Demand Triggers Widespread Market Slowdown
As a consequence of expensive raw ingots, manufacturers in Moradabad have been compelled to mark up the prices of finished brass items. Higher retail prices have discouraged buyers, leading to a noticeable slump in market sales compared to the previous year. Local business owners report that revenues have plummeted, making it difficult for small workshops to sustain operations. The cascading effect of expensive raw materials has dragged the entire brass sector into a period of deep economic stagnation.
