India to Be Net Importer of Copper by End of 2019

SEATTLE (Scrap Monster): According to recent forecast by CARE Ratings, India is likely to become net importer of refined copper by the end of fiscal year 2019, after being a net exporter of the metal for several years. This is mainly on account of significant drop in domestic production of refined copper following major smelter shutdowns and gradual increase in consumption.

The copper imports by the country so far this fiscal totaled 66 kilo tonnes (kt), significantly higher by over 153% when compared with the imports of 26kt during corresponding period the previous fiscal. The major source of import was Japan, which accounted for 71% of the Indian imports. CARE Ratings foresee further increase in imports of the metal, mainly due to increased consumption levels on the backdrop of heightened demand from infrastructure projects and automobile segment.

The domestic refined copper output by the country during FY 19 is estimated at around 425 kt, registering huge decline by 49.6% over the prior fiscal. The production has totaled only around 379 kt so far this fiscal. The reduced production is mainly due to prolonged shutdown at Sterlite’s Tuticorin smelter, which accounts for nearly 40% of the country’s copper smelting capacity.

India’s copper exports registered sharp fall by 87.4% to 36kt so far this fiscal. The exports had recorded 25% jump during the corresponding period in FY 18. China was the key export destination, receiving 75% of the total refined copper shipments out of the country.