India to defend import curbs on copper in legal tussle with trade associations, sources say
NEW DELHI, May 13 (Reuters) - The Indian government is expected to argue that there is sufficient domestic supply of copper cathodes, and an adequate number of suppliers, as it prepares a response to a case on import curbs filed by two trade associations, two sources said.
India, the world's second-largest importer of refined copper, relies on imports to address shortfalls and meet robust demand in sectors such as energy, defence, automotives and infrastructure. Copper is among the 30 critical minerals identified by India in 2023.
But the government imposed quality control measures on copper cathode imports in December, requiring all suppliers, foreign and domestic, to obtain certification from Indian authorities.
The Bombay Metal Exchange and the Bombay Non-Ferrous Metals Association have submitted a petition, seen by Reuters, to the Bombay High Court claiming that the government action could lead to a monopoly dominated by three domestic suppliers, without naming them.
"Where are the shortages?" one of the sources, familiar with government thinking, told Reuters. "The only evidence they (trade bodies) have is that in December and January imports had reduced, which is old data."
The source said that companies had imported large quantities of copper in October and November, which then led to lower imports in the following months.
"We will fight the case, their case does not hold," the source said, declining to be identified as the government has not filed a formal response yet. Another source confirmed the government would defend its position.
The trade associations and India's mines ministry did not immediately respond to requests for comment.
Copper demand is expected to double by 2030 as India aims to meet the needs of its industries and the energy transition. Domestic companies in the copper industry include Hindalco Industries (HALC.NS), opens new tab, Vedanta, Adani (ADEL.NS), opens new tab, and the state-owned Hindustan Copper (HCPR.NS), opens new tab.
India's refined copper production is estimated at around 555,000 tons per year, and New Delhi imports around 500,000 tons of copper a year to meet the shortfall. Imports have surged since the 2018 closure of Vedanta's domestic Sterlite Copper smelter
But in December, the government said that the ramp-up of Adani Enterprises' smelter would fulfil India's domestic requirement and cut down imports. It is expected to become operational over the next four weeks.
Japan accounts for about two-thirds of India's refined copper imports, followed by Tanzania and Mozambique.
There are currently 10 certified foreign copper suppliers, both sources said, seven of which are Japanese, and five more domestic certified suppliers.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
32 minutes ago
- Reuters
Oil prices hold gains ahead of US-China trade talks
BEIJING, June 9 (Reuters) - Oil prices held on to last week's gains early on Monday as investors waited for U.S.-China trade talks to be held in London later in the day. Brent crude futures were flat at $66.47 a barrel at 0008 GMT. U.S. West Texas Intermediate crude was trading up 1 cent at $64.59. The prospect of a U.S.-China trade deal supported prices as three of Donald Trump's top aides were set to meet with counterparts in London on Monday for the first meeting of the U.S.-China economic and trade consultation mechanism. The announcement on Saturday followed a rare Thursday call between the two countries' top leaders, with both under pressure to dial down tensions as China's export controls on rare earths disrupt global supply chains. Oil prices posted their first weekly gain in three weeks on the news. A U.S. jobs report showing unemployment held steady in May appeared to increase the odds of a Federal Reserve interest rate cut, further supporting last week's gains. Inflation data from China on Monday morning will give a reading of domestic demand in the world's largest crude importer. The economic data and the prospect of a trade deal that could support economic growth and increase demand for oil outweighed worries about increased OPEC+ supply after the group announced another big output hike for July on May 31. HSBC expects OPEC+ to accelerate supply hikes in August and September, which are likely to raise downside risks to the bank's $65 per barrel Brent forecast from the fourth quarter of 2025, according to a research note on Friday. Capital Economics researchers said they believe this "new faster pace of (OPEC+) production rises is here to stay".
North Wales Chronicle
37 minutes ago
- North Wales Chronicle
Farage to call for Port Talbot blast furnaces to reopen
On a visit to the South Wales town, the party leader is expected to say that the resumption of traditional steelmaking should be a long-term ambition, a spokesman said. Mr Farage believes his party has a chance of ending Labour's long-standing dominance in Wales during the Senedd elections next year amid opinion poll momentum and gains made at the local polls last month. The Government has backed plans for a new £1.25 billion electric arc furnace at the Tata steelworks, with the switch-on due in 2027 as part of the push towards greener production. The plant's last blast furnace was shut down in September 2024. Some MPs have said workers in South Wales have been let down in comparison with those retaining jobs in Scunthorpe, where ministers took control of the steelworks to prevent the closure of its blast furnaces. The Government has said the two steelworks were in different situations. Mr Farage's speech comes as Reform seeks to draw a line under internal clashes after chairman Zia Yusuf quit the party on Thursday only to return 48 hours later, saying the resignation had been 'born out of exhaustion'. It followed a row in which he described a question to the Prime Minister concerning a ban on burkas from his party's newest MP, Sarah Pochin, as 'dumb'. Mr Yusuf will now have four jobs, including leading the party's plans to cut public spending via the so-called 'UK Doge', based on the US Department of Government Efficiency which was led by tech billionaire Elon Musk. Mr Farage's spokesman said: 'He will focus part of the speech on Keir Starmer's year of failure in the UK as a whole but especially Wales. Of course for years Welsh Labour blamed all issues on the Tories in Westminster, now their excuse is gone and the game is up for them.' Reform had also been hoping to cause an upset last week in Scotland, where it was fighting a Holyrood by-election in Hamilton, Larkhall and Stonehouse, but Labour secured a shock victory. Scotland's First Minister John Swinney had claimed the contest would be a 'two-horse race' between the SNP and Reform but Mr Farage's party came third with 7,088 votes to Labour's 8,559 and the SNP's 7,957.
Reuters
41 minutes ago
- Reuters
Japan's Q1 GDP contraction narrows on consumption improvement, revised figure shows
TOKYO, June 9 (Reuters) - Japan's economy contracted in the January-March quarter at a slower pace than initially estimated, government data showed on Monday, with consumption figures revised upwards even as uncertainty on U.S. tariffs clouds the outlook. Gross domestic product shrank an annualised 0.2% in the three months to March, the Cabinet Office's revised data showed, slower than the 0.7% contraction in the initial estimate and economists' median forecast. The revised quarter-on-quarter number translates as flat in price-adjusted terms, compared with a 0.2% shrinkage issued on May 16. Monday's revised data reinforced analysts' concern that the economy was losing steam even before U.S. President Donald Trump's so-called reciprocal tariffs in April 2. Private consumption, which accounts for more than half of the Japanese economy, inched up 0.1%, versus flat in the preliminary reading. The capital expenditure component of GDP, a barometer of private demand-led strength, rose 1.1% in the first quarter, revised down from 1.4% in the initial estimate. Economists had estimated a 1.3% rise. External demand, or exports minus imports, knocked 0.8 percentage point off growth, the same as the initial reading. On the other hand, domestic demand contributed 0.8 percentage point. Japan faces a 24% U.S. tariff starting in July unless it can negotiate a lower rate. It is also scrambling to find ways to persuade Washington to exempt its automakers from 25% tariffs on automobiles, Japan's biggest industry. Policymakers and analysts are concerned global trade tension unleashed by U.S. tariffs may complicate the Bank of Japan's efforts to normalise monetary policy. The BOJ is set to hold a two-day policy meeting early next week.
