Copper Industry

Industry wish list

Import duty rationalization. Uniform levies exist in the copper industry from copper concentrate to copper rods. This has adversely impacted the small-scale industry, which imports scrap for converting into ingots. Consequently, many times final product prices are lower than raw material prices. Rationalisation is required to help sustain the industry.

Reduce import duties on copper concentrate to nil from the current 5%. Other emerging and developed countries deficient in copper do not levy any duty on concentrate.

Key Positives

Copper prices have moved up significantly on the LME. The year saw prices rise to $2000 / MT. Subsequently, treatment and refining charges have improved, which has resulted in higher earnings for the smelters.

Demand of copper exceeds the supply in the country. Therefore, domestic producers have a captive market. Further, copper demand showed an 11% growth and is expected to witness double-digit growth in the coming years.

Key Negatives

Import duties on finished products and raw materials are the same. Import duties on copper cathodes, scrap and rods are 35%. Consequently, domestic manufacturers cannot match import prices of finished products.