Copper wire, tube imports hit multi-year highs in FY25; cathode shipments fell 34% year-on-year | Business News

In India, copper is classed as a crucial mineral given restricted home manufacturing and excessive demand in standard and rising applied sciences—from air conditioners and transformers to electrical car (EV) batteries and wind generators. It is usually seen as a bellwether of financial exercise owing to its intensive utility throughout sectors.

From a median of 27,000 tonnes every month between April and November 2024, copper cathode imports fell to round 2,000 tonnes per 30 days between December and February, after the QCO went into impact from December 1. Then, in March 2025, imports recovered barely to 16,000 tonnes, official commerce information confirmed.

India depends on imports for about 30 per cent of its copper cathode demand, a key uncooked materials for wire, tubes, and sheets. The Adani Group’s new Gujarat smelter, scheduled to achieve peak capability this monetary yr, is anticipated to make the nation self-sufficient for the near-term.

Cathode imports get well as three-month QCO disruption eases

In FY25, India imported 2.39 lakh tonnes (Rs 19,134 crore) of copper cathode, 34 per cent lower than 3.63 lakh tonnes (Rs 24,552 crore) within the earlier monetary yr. Amid sharp drop in imports between December to February, two metals commerce associations filed a petition towards the Union Mines Ministry, which issued the QCO, alleging that the standard norms have brought on “acute shortages” in provide.

The petition added that home producers might “cost exorbitant and irrational charges” as imports decline. The case will likely be heard by the Bombay Excessive Court docket on June 27.

Nonetheless, a rebound in copper cathode imports in March to round 16,200 tonnes signifies that provide constraints are easing. Official sources informed The Indian Specific that no scarcity was recorded on account of the QCO, and that the Mines Ministry has filed its response to the petition in courtroom.

The steep drop in imports stemmed from compliance points amongst exporters, particularly Japanese suppliers who dominate India’s copper cathode imports. The QCO mandates that each home producers and international suppliers receive the Bureau of Indian Requirements (BIS) certification to promote copper cathode in India. Most Japanese producers obtained certification solely after the QCO took impact, and a few continued to face minor challenges in making certain compliance post-certification.

“Roughly 50 per cent of copper cathode demand is within the winding wires phase, which has confronted no challenge in availability post-December. There was no impression on downstream sectors,” sources stated. Delays in BIS certification have been brought on by Japanese smelters taking on six months to use, regardless of ample time and extensions, they added.

Copper wire, tube, sheet imports surge in FY25

Downstream copper imports climbed to multi-year highs in FY25, defying the stoop in cathode shipments. Copper wire imports—primarily from the UAE—rose 17 per cent from 1.31 lakh tonnes in FY24 to 1.54 lakh tonnes in FY25, with their worth leaping 29 per cent to Rs 12,653 crore.

Extensively utilized in electrical wiring, motors, and transformers for its excessive conductivity and sturdiness, copper wire imports in FY25 hit a five-year excessive, although nonetheless beneath the over 2 lakh tonnes imported in FY19 and FY20.

Equally, copper tubes and pipes imports—primarily from Vietnam—jumped 30 per cent to 1.14 lakh tonnes, the very best since FY18, valued at Rs 10,157 crore. Copper tubes and pipes are utilized in air-con, refrigeration, and warmth exchangers. Copper plates, sheets and strips imports—utilized in electrical busbars and transformers—surged 49 per cent to round 30,000 tonnes, valued at Rs 2,725 crore.

Imports of copper merchandise rose regardless of the Division for Promotion of Business and Inside Commerce (DPIIT) imposing a QCO on these things from October 19, 2024, initially for giant and medium enterprises. Development persevered on account of potential stocking-up earlier than enforcement, longer timelines for small (January 2025) and micro (April 2025) models, exemptions for sure tubes and export-use merchandise, and well timed grant of BIS certification to some international producers.

Home cathode output rises, new smelters coming on-line

Home copper cathode manufacturing rose 12.6 per cent to five.73 lakh tonnes in FY25, pushed primarily by Hindalco Industries Ltd, which holds a 70 per cent market share and has a capability of 5 lakh tonnes. Manufacturing final yr surpassed the earlier peak of 5.55 lakh tonnes recorded in FY23.

Vedanta’s Sterlite Copper, with a smaller capability of two.16 lakh tonnes, contributed 26 per cent of cathode in FY25. Notably, India remained self-sufficient in copper cathode till 2018, when Vedanta’s Tuticorin plant was shut down over environmental violations.

Adani’s Kutch Copper Ltd produced 22,000 tonnes (4 per cent share) in its first yr, with a smelter capability matching Hindalco’s at 5 lakh tonnes. Manufacturing is anticipated to ramp as much as full capability by October, with sources stating, “As soon as the Adani plant is totally operational, India’s total cathode demand will likely be met internally.”

Moreover, the JSW Group plans to ascertain a 5 lakh-tonne copper smelter in Odisha by 2028-29. With India’s per capita copper consumption nonetheless at 0.6 kg—properly beneath the worldwide common of three kg—demand is ready to surge. To satisfy this, India’s smelting capability should develop as international provides tighten.