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Zawya
6 days ago
- Business
- Zawya
India government asks court to reject challenge to copper import curbs
The Indian government has rejected a claim by trade bodies that its move to impose quality control curbs on copper cathode imports would lead to a monopoly, as 10 foreign suppliers have obtained certification, a legal document showed on Thursday. India, the world's second-largest importer of refined copper, is defending its quality control measures in court against accusations that it would lead to supply shortages and create a monopoly of three domestic suppliers. In an over 160-page reply to the petitions by the Bombay Metal Exchange (BME) and the Bombay Non-Ferrous Metals Association, the government says their concerns on supply constraints are "misconceived and unfounded". "The implementation of the QCO has not led to any monopolistic practices of price distortion," said India's Ministry of Mines, as it asked for the rejection of the trade associations' legal challenge. The Bombay Metal Exchange, the Bombay Non-Ferrous Metals Association and the federal Ministry of Mines did not immediately respond to Reuters' emails seeking comments. The reply seen by Reuters adds that the quality control order was a regulatory measure aimed to safeguard consumer interests and applies equally to all entities whether they are domestic or foreign. "Foreign suppliers are not being barred... The regulation aims to enhance product reliability and safety, not restrict competition," it added. Copper is one of 30 critical minerals identified by India in 2023 and demand within the country is expected to double by 2030. The domestic supply is dominated by Hindalco Industries , Vedanta, Adani and the state-owned Hindustan Copper . Imports in the country have surged since 2018 after the closure of Vedanta's domestic Sterlite Copper smelter. Japan accounts for about two-thirds of India's refined copper imports, followed by Tanzania and Mozambique. Among the 10 foreign suppliers who have secured the certification under the new rules, seven are from Japan, two from Malaysia and one from Austria, the Indian government's reply said. Bombay Metal Exchange President Sandeep Jain told Reuters last month that the trade body was "compelled to seek judicial intervention" as the government did not defer the implementation of the quality control orders, and the measure had led to supply shortages. (Reporting by Arpan Chaturvedi, editing by Ed Osmond)
Zawya
14-05-2025
- Business
- Zawya
India to defend import curbs on copper in legal tussle with trade associations, sources say
NEW DELHI: 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, reviewed 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 Bombay Metal Exchange was "compelled to seek judicial intervention" as the government did not defer the implementation of the quality control orders, President Sandeep Jain said in a statement. "Given that India relies on imports for approximately 40% of its copper supply, this non-tariff barrier has inevitably led to supply shortages," Jain said, adding that during April to February the copper imports shortfall was 100,000 metric tons compared to the same period last year. India's mines ministry did not respond to request for comment. DEMAND SURGE 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, Vedanta, Adani, and the state-owned Hindustan Copper. 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. (Reporting by Neha Arora; Editing by Rachna Uppal and Christian Schmollinger)
Reuters
13-05-2025
- Business
- Reuters
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 ( opens new tab, Vedanta, Adani ( opens new tab, and the state-owned Hindustan Copper ( 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.
