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

In India, copper is classified as a critical mineral given limited domestic production and high demand in conventional and emerging technologies—from air conditioners and transformers to electric vehicle (EV) batteries and wind turbines. It is also seen as a bellwether of economic activity owing to its extensive application across sectors.

From an average of 27,000 tonnes each month between April and November 2024, copper cathode imports fell to around 2,000 tonnes per month between December and February, after the QCO went into effect from December 1. Then, in March 2025, imports recovered slightly to 16,000 tonnes, official trade data showed.

India relies on imports for about 30 per cent of its copper cathode demand, a key raw material for wire, tubes, and sheets. The Adani Group’s new Gujarat smelter, scheduled to reach peak capacity this financial year, is expected to make the country self-sufficient for the near-term.

Cathode imports recover as three-month QCO disruption eases

In FY25, India imported 2.39 lakh tonnes (Rs 19,134 crore) of copper cathode, 34 per cent less than 3.63 lakh tonnes (Rs 24,552 crore) in the previous financial year. Amid sharp drop in imports between December to February, two metals trade associations filed a petition against the Union Mines Ministry, which issued the QCO, alleging that the quality norms have caused “acute shortages” in supply.

The petition added that domestic producers could “charge exorbitant and irrational rates” as imports decline. The case will be heard by the Bombay High Court on June 27.

However, a rebound in copper cathode imports in March to around 16,200 tonnes indicates that supply constraints are easing. Official sources told The Indian Express that no shortage was recorded on account of the QCO, and that the Mines Ministry has filed its response to the petition in court.

The steep drop in imports stemmed from compliance issues among exporters, especially Japanese suppliers who dominate India’s copper cathode imports. The QCO mandates that both domestic producers and foreign suppliers obtain the Bureau of Indian Standards (BIS) certification to sell copper cathode in India. Most Japanese producers received certification only after the QCO took effect, and some continued to face minor challenges in ensuring compliance post-certification.

“Roughly 50 per cent of copper cathode demand is in the winding wires segment, which has faced no issue in availability post-December. There has been no impact on downstream sectors,” sources said. Delays in BIS certification were caused by Japanese smelters taking over six months to apply, despite 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 slump 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 value jumping 29 per cent to Rs 12,653 crore.

Widely used in electrical wiring, motors, and transformers for its high conductivity and durability, copper wire imports in FY25 hit a five-year high, though still below the over 2 lakh tonnes imported in FY19 and FY20.

Similarly, copper tubes and pipes imports—primarily from Vietnam—jumped 30 per cent to 1.14 lakh tonnes, the highest since FY18, valued at Rs 10,157 crore. Copper tubes and pipes are used in air conditioning, refrigeration, and heat exchangers. Copper plates, sheets and strips imports—used in electrical busbars and transformers—surged 49 per cent to around 30,000 tonnes, valued at Rs 2,725 crore.

Imports of copper products rose despite the Department for Promotion of Industry and Internal Trade (DPIIT) enforcing a QCO on these items from October 19, 2024, initially for large and medium enterprises. Growth persisted due to potential stocking-up before enforcement, longer timelines for small (January 2025) and micro (April 2025) units, exemptions for certain tubes and export-use products, and timely grant of BIS certification to some foreign manufacturers.

Domestic cathode output rises, new smelters coming online

Domestic copper cathode production rose 12.6 per cent to 5.73 lakh tonnes in FY25, driven primarily by Hindalco Industries Ltd, which holds a 70 per cent market share and has a capacity of 5 lakh tonnes. Production last year surpassed the previous peak of 5.55 lakh tonnes recorded in FY23.

Vedanta’s Sterlite Copper, with a smaller capacity of 2.16 lakh tonnes, contributed 26 per cent of cathode in FY25. Notably, India remained self-sufficient in copper cathode until 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 year, with a smelter capacity matching Hindalco’s at 5 lakh tonnes. Production is expected to ramp up to full capacity by October, with sources stating, “Once the Adani plant is fully operational, India’s entire cathode demand will be met internally.”

Additionally, the JSW Group plans to establish a 5 lakh-tonne copper smelter in Odisha by 2028-29. With India’s per capita copper consumption still at 0.6 kg—well below the global average of 3 kg—demand is set to surge. To meet this, India’s smelting capacity must expand as global supplies tighten.