India’s government is preparing to defend its recent restrictions on copper cathode imports, arguing that there is adequate domestic supply and a sufficient number of certified suppliers, according to two sources familiar with the matter.
The dispute stems from a petition filed with the Bombay High Court by the Bombay Metal Exchange and the Bombay Non-Ferrous Metals Association. The trade bodies argue that new quality control requirements imposed in December 2023 could distort the market by concentrating supply in the hands of just a few domestic producers. The petition warns of a potential monopoly, though it does not name the companies involved.
In response, government sources told Reuters that there is no evidence of shortages and that reduced imports in December and January reflect a high volume of purchases made earlier in October and November. The government is expected to argue that the trade associations’ case lacks sufficient data and that it plans to contest the matter in court.
The quality control measures require both domestic and international suppliers to obtain certification from Indian authorities before selling copper cathodes into the market. There are currently ten certified foreign suppliers—seven from Japan—and five domestic ones.
India, the world’s second-largest importer of refined copper, consumes around 1 million tonnes annually but produces only about 555,000 tonnes domestically. The shortfall has historically been met through imports, particularly since the 2018 closure of Vedanta’s Sterlite Copper smelter in Tamil Nadu.
However, the government has stated that the commissioning of Adani Enterprises’ new copper smelter, expected to become operational within weeks, will help meet domestic demand and reduce reliance on imports. The facility is part of broader efforts to secure the country’s copper supply, as the metal was designated one of 30 critical minerals by the government in 2023.
Japan remains India’s largest supplier of imported refined copper, followed by Tanzania and Mozambique.
