India’s Copper Cathode Norms Termed Risky by Industry, Govt Stresses Supply Security

India’s quality control order on copper cathodes is expected to reduce domestic availability due to “costly and unnecessary compliance burdens” on foreign suppliers, the Bombay Metal Exchange told Reuters.

Being the world’s second-largest importer of refined copper, India imposed quality controls on copper cathode imports in December 2024, mandating all suppliers, foreign and domestic, to ensure there were checks on substandard products in the country.

The Bombay Metal Exchange (BME), as reported by Reuters, claimed that the quality control curbs have led to a decline in imports. A claim which was rejected by the government.

“With domestic licensees unable or unwilling to supply the market and unreliable foreign alternatives, the downstream sector faces real and immediate shortages,” the BME told Reuters.

According to the existing quality control rules, suppliers must get a licence from the Bureau of Indian Standards, which oversees quality control in India to meet the quality control rules.

Trade Bodies Challenge QCO

The BME and the Bombay Non-Ferrous Metals Association and other trade bodies have legally challenged the quality controls being imposed by the government.

However, the government has defended the quality control order in court against claims that it would lead to supply shortages and create a supply monopoly.

The BME stated all five domestic licensees use copper cathodes entirely for their own consumption. "As for foreign...licensees, four of the 10 do not supply copper cathodes at all, offering only ingots or semi-finished forms," the BME said in a statement to Reuters.

Supply Stable, Says Ministry

The Ministry of Mines told The Indian Express that it regularly monitors the supply situation in the country through “extensive industry consultations, and ensured that all four domestic producers and ten major foreign suppliers had obtained BIS (Bureau of Indian Standards) certification.”

The import of copper cathode has “fully stabilised” and there is no supply side rigidity being faced by the domestic user industry, according to the Ministry of Mines, reported The Indian Express.

“There is no supply side rigidity, whatsoever, and domestic user industry has enough choice of BIS-certified domestic and foreign suppliers to source their cathode requirements. Thus, there is no scope for any irrational pricing, and as such the market is driven by LME prices,” the ministry said.

Copper cathode is used in the production of key downstream products, including “high-performance electrical goods having safety concerns like electrical wires with applications at household level.”

In an order published by the Ministry of Mines on August 31, 2023, India's Quality Control Order (QCO) mandated that all imported copper cathodes must adhere to the Indian Standard, IS 191:2007 and carry the ISI mark—signifying conformity with strict quality benchmarks—from the Bureau of Indian Standards. This ensures product reliability and protects consumers from substandard copper entering the market.