Copper in India - June 2003

ICSG’s June 2003 General Session opened with a Seminar on India.  Experts from the Indian government, industry and market research organizations presented in-depth information on copper production, usage trends and recent regulatory developments in India.

India accounts for about 3.5 to 4% of the world’s copper production and usage.  Speakers advised that a shortage of copper mines combined with a low copper percentage averaging around 1% copper makes mining operations unviable.  India’s primary copper production therefore relies heavily upon imported concentrates, with over 0.8 million tonnes/yr imported in 2001-02 from various countries (e.g. Chile, Indonesia, Australia, Canada).

In recent years India has been shifting from being a net refined copper importer to an important copper exporting country.  The capacity for production of refined copper in India has risen from 47,500 tonnes in 1997 to 447,500 tonnes in 2003 and could reach 597,500 tonnes shortly. 

The current copper usage including scrap is estimated to be around 400,000 tonnes.  The most important end uses for copper are electric and electronic applications with an estimated share of close to 50% of total usage.  Future growth areas for copper are regarded to be in the infrastructure development (including expansion of the railway network), the power sector (including rural electrification programs), and the information technology sector. 

Current internal Indian prices of copper/copper alloy scrap are about 1.75 to 2 times the international price due to high taxes, duties, freight and trader's margins.

The Indian KELKAR Committee recommended a 10% basic customs duty for raw material and 20% for finished good, currently set at 25% for both copper products and scrap. 

The ICSG will release shortly a major study entitled “The Indian Copper Market: Focus on Recyclables”, providing an overview of the Indian copper industry, usage of copper in India, trade aspects, recycling in India and the regulatory framework.

From left to right:  Jancy Ayyawamy  (Technology Information, Forecasting and Assessment Council (TIFAC), Department of  Science and Technology), Sunil Barthwal (Department of Mines), Kannan Krishnan (Hindustan Copper), V. Srinivasan (MECON Limited), Patrick Hurens (Secretary-General, ICSG), Deepak Bhatnagar (TIFAC).