Aluminium makers, end users feel the squeeze as caustic soda prices spikes

construction to consumer durables, aluminium’s price movements have wide-ranging implications for industry.“Caustic soda prices are highly vulnerable to energy price fluctuations, and energy remains a key variable in the current conflict scenario. Any increase in raw material prices is bound to impact user industries,” said Nirmal K.

Minda, president of industry body Assocham and chairman of the Minda Group, an auto component major. The extent of impact on production cycles and margins depends on inventory levels, supply diversification, and the duration of the war, he added.Minda also noted that the aluminium price rise could spike construction project costs in the near term, as the metal is widely used for window frames, siding and roofing.The use of aluminium spreads to niche sectors as well.

While India is known for its low-cost space missions, rising input costs—including that of aluminium—is set to add pressure across aerospace manufacturing and could affect the country's competitiveness, according to a domain expert.“Space components require lightweight and high-tensile materials, and aluminium is the preferred choice. A rise in aluminium prices could raise concerns about India’s cost competitiveness in the space sector, especially if prices remain elevated,” said Souvik Bhattacharjya, director of the resource efficiency & governance division at The Energy and Resources Institute (Teri).“Any sector that depends on lightweight materials—space, aviation, beverage cans, construction, and automobiles—stands to be impacted,” he added.