User industries import copper to overcome shortage

Local consumers of copper are reportedly importing the metal owing to shortage of its domestic production on the back of closure of a smelting unit of Sterlite Industries in Tamil Nadu.

Sterlite's copper smelter in Tuticorin, Tamil Nadu, which caters to half of India's copper consumption, has remained closed for more than a month owing to alleged leakage of gas from the unit.

This reduced supply of refined copper in the domestic market leading to rise in prices. The plant produces 30,000 tonne of refined copper a month and nearly half of the output goes to China.

Following the closure of the plant, the Dubai unit of Vedanta Resources, the parent firm of Sterlite, is exporting 4,000 tonne of refined copper a month to the Indian customers of Sterlite.

Sterlite Industries is a unit of London-listed resources conglomerate Vedanta Resources, controlled by billionaire Anil Agarwal.

In order to bridge the shortfall, private traders have also doubled copper imports to about 8,000 tonne per month, industry sources informed.