Closure of Indian copper smelters push prices up, lift imports

NEW DELHI (Scrap Monster) : The shutdown of two major Indian smelters which account for nearly 90% of the country’s copper output is reported to have led to intense shortage of the metal, which in turn has spiked up the prices and boosted metal imports.

The country’s largest copper smelter owned by Sterlite Industries at Tuticorin was closed on March 30^th when local residents voiced complaints of emissions from the plant feared to be leading to breathing ailments. The protestors argue that the smelter is causing threat to the local fishing industry as well.

The routine shutdown at Hindalco’s Birla smelter has further added to the shortage. The company has not yet announced the duration of the shutdown, though industry sources see the shutdown extending to at least five weeks.

The above two smelters account for almost 90% of the country’s total copper output.

The acute shortage of copper has spiked up the prices. The premiums for refined copper have almost doubled. Imports of copper, mainly from Russia, have also surged. Cable manufacturers are the worst affected. The major industry players see severe production loss unless supply is restored in the coming week.