RAW MATERIALS PRICE VOLATILITY AND ECONOMIC IMPACTS ON THE JAMNAGAR BRASS PARTS INDUSTRY: A STUDY ON MICRO AND SMALL-SCALE UNITS

Abstract

Most of the production work is carried out by micro and small-scale units in the Jamnagar Brass Parts industry. Brass scrap is most often used in this industry. Brass scrap prices are based on brass metal prices, and Brass is composed of a mixture of copper, zinc, and lead metals, in addition, copper holds the highest position among other related metals. Therefore, the highest percentage of copper can be found in comparison to other metals. When it comes to brass scrap, prices mostly depend on copper prices. Copper is considered a globle metal today, with developed countries dominating both its production and consumption. In this regard, over the past few years, copper prices have experienced significant instability. Consequently, brass prices also exhibit instability. In this research paper focuses on the Jamnagar Brass Parts industry and examines the economic impacts and challenges arising from the volatility in prices of raw materials, such as brass scrap, on both foundry units and manufacturing units. Furthermore, these small-scale units find themselves in an uncertain position as a result of the volatile fluctuations in raw material prices. Consequently, these units react or respond to the price fluctuations of raw materials like brass scrap. This paper also tries to address this issue.