Shutdown of Sterlite copper smelter hits Indian copper imports by 221 per cent

SMM8 29 news: due to the shutdown of the Sterlite copper smelter led to the domestic refined copper production fell 47.1%, prices rose, exports fell. Although the decline in production was mainly due to the closure of the Sterlite copper smelter owned by Vedanta, the shutdown of smelters in (Hindustan Copper, HCL), the Indian copper industry, and Darko (Hindalco), the Indian copper industry, also hit copper production in India for maintenance purposes. The capacity of Sterlite copper smelter is 400000 tons per year, accounting for 40 per cent of the national copper smelting capacity. The decline in production at the copper smelter has had a domino effect, resulting in a sharp drop in copper exports to India. India, a former net exporter of refined copper, saw exports fall 91.6 per cent in the quarter to June, while imports rose 221 per cent. Domestic copper consumption has also fallen as rising copper prices have made aluminium an economic alternative. Aluminum can be used as a substitute for copper in the wiring of power cables and electrical equipment. Demand for copper in India's domestic market is mainly dependent on electrical appliances (34 per cent), construction (8 per cent), cars (11 per cent) and consumer durable goods (8 per cent).

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