Copper: India

Select Language Afrikaans Albanian Arabic Armenian Azerbaijani Basque Belarusian Bulgarian Bengali Catalan Chinese (Simplified) Chinese (Traditional) Croatian Czech Danish Dutch English Estonian Filipino Finnish French Galician Georgian German Greek Gujarati Haitian Creole Hebrew Hindi Hungarian Icelandic Indonesian Irish Italian Japanese Javanese Kannada Khmer Korean Latvian Lithuanian Macedonian Malay Maltese Marathi Nepali Norwegian Persian Polish Portuguese Punjabi Romanian Russian Serbian Slovak Slovenian Spanish Swahili Swedish Tamil Telugu Thai Turkish Ukrainian Urdu Vietnamese Welsh Yiddish

This is a collection of articles archived for the excellence of their content. Additional information may please be sent as messages to the Facebook community, Indpaedia.com. All information used will be gratefully acknowledged in your name.

Production, imports

2016> 2018

Allirajan M, Copper production dips 47%, imports surge 233%, August 30, 2018: The Times of India

Copper in India- Domestic production, consumption, imports and exports, 2016- 2018
From: Allirajan M, Copper production dips 47%, imports surge 233%, August 30, 2018: The Times of India

Closure Of Sterlite Plant Has Domino Effect

The closure of Sterlite’s copper smelter in Tuticorin has resulted in a steep fall in refined copper production in the country during the first quarter (Q1) of 2018-19 (FY19). Production slumped 47.1% year-on-year (y-o-y) to 109 kilo tonnes (KT) during the quarter. The sharp decrease in production has led to a domino effect — a strong increase in the country’s copper imports and a fall in exports.

Import of copper has surged 233% to 10 KT (one kilo tonne equals 1000 tonnes) during the quarter. Incidentally, India used to be a net exporter of refined copper. Exports plunged 91.6% y-o-y to a mere 7 KT during Q1 of 2018-19. Interestingly, exports had increased by 70.1% in Q1 of 2017-18 when imports fell by 69.9%.

India imported refined copper from Japan (66% share), Congo (22%), Switzerland (5%), Tanzania (5%), South American countries (1%) and UAE (1%) and exported refined copper to China (58%), South Korea (30%), Bangladesh (6%) and Malaysia (6%) during Q1 of FY19.

Global copper prices have risen by 21.6% y-o-y during Q1 of FY19. LME (London Metal Exchange) prices of copper were volatile during the quarter due to trade tensions between China and the US. Prices of copper had risen during the first week of June when the verdict — of permanent closure of Vedanta’s Sterlite smelter — was announced.

The share of India’s copper exports to China has decreased — from 63% during Q1 of FY18 to 58% in Q1 of FY19. The share of imports from Japan has increased from 33% to 66% during the timeframe.

Sterlite’s Tuticorin smelter, with a production capacity of 4 lakh tonnes per annum, accounted for nearly 40% of the country’s copper smelting capacity.

Production in Hindustan Copper (HCL) and Hindalco’s copper smelting arm, the other copper producing units in the country, was also restrained in Q1 of FY19 due to the shutdown of their smelters for maintenance purposes. India’s refined copper production stood at 843 KT during FY18. The production is estimated to touch 510 KT in FY19.

2017-19: imports, exports; Sterlite plant shutdown

Copper exports crash 70% on Sterlite plant shutdown, April 24, 2019: The Times of India

2017-19: imports, exports of copper, and the impact of the Sterlite plant shutdown
From: Copper exports crash 70% on Sterlite plant shutdown, April 24, 2019: The Times of India

Coimbatore/New Delhi:

India’s copper exports fell nearly 70% to $1.1 billion in 2018-19 as a government order, following protest by locals, forced Sterlite to shut down its smelter in Tuticorin.

The Tuticorin smelter, with an annual production capacity of 4 lakh tonnes, accounted for 40% of the country’s copper smelting capacity. The domestic copper demand was estimated to touch 4.8-5 lakh tonnes by the end of FY19.

The data exposes India’s vulnerability in key segments as the closure of one plant has had a devastating impact on the sector. As reported by TOI on Monday, silver jewellery exports plummeted 75% in FY19 as Nirav Modi and Mehul Choksi fled the country. In case of copper, a fall in exports is not the only concern. The closure has resulted in an increase in shipments of the key metal into the country, with commerce ministry data showing that imports during the first 10 months of the last financial year were almost equal to the value of consignments that came into India during the full 2017-18 financial year (see graphic).

“Recently, the Supreme Court refused to allow Vedanta to reopen Sterlite Copper’s Tuticorin plant. Therefore, the trend in exports of copper will continue,” the Engineering Export Promotion Council (EEPC) said, while releasing the annual numbers.

The industry body is lobbying for a cut in import duty from 2.5% to zero, arguing that the levy creates an inverted duty structure, with the finished products having higher taxes than inputs and raw materials. It has also pointed to Indonesia’s decision to levy a tax on concentrate exports, which makes imports more expensive. Government officials said that exports to China have been adversely impacted by the closure of the plant. In March, shipments to Taiwan (-99%), Peru (-99.7%), Korea Rep (-95%), China (-66.4%), Nepal (-38%) and Thailand (-21%) declined sharply, EEPC said in a statement.