Rising copper prices, Gulf tensions hit electric fan industry in Gujrat, Gujranwala

Electric fan manufacturers in Gujrat and Gujranwala have reported a sharp decline in sales during the current season due to rising raw material prices, supply disruptions and increasing production costs.

Industry representatives said prices of key raw materials, including copper, silver and fan blades, had risen sharply in recent months, putting pressure on manufacturers and dealers.

Manufacturers alleged that raw material markets, particularly copper and scrap supplies, were being controlled by cartels following tensions in the Gulf region and closure of the Strait of Hormuz in recent months.

They said scrap previously imported from Dubai had become difficult to obtain as local dealers, especially in Gujranwala, were withholding stock and selling at higher prices.

According to manufacturers, copper prices increased from around ₨1,000 per kilogram five years ago to nearly ₨4,100 per kilogram during the current manufacturing season.

Industry officials stated that prices of electric fans had increased by 15% to 20% per unit, while overall business costs had nearly doubled under prevailing market conditions.

Manufacturers estimated that electric fan sales could decline by 40% to 50% during the ongoing season.

The industry’s peak sales period typically runs from February to mid-June each year, when manufacturers supply products to dealers across the country.

Manufacturers also said smart lockdowns imposed in commercial markets had affected retail sales activity during the season.

They warned that exports of Pakistani electric fans could also come under pressure due to ongoing tensions in the Gulf region.

Industry representatives further stated that pressure from Federal Board of Revenue to meet tax collection targets had created additional operational difficulties for manufacturers.