India: Key takeaways from BME base metals conclave

Several important topics were deliberated upon at the recently-held Bombay Metal Exchange Base Metal Conclave, 2024. The key focus of the deliberations was the quality control aspect of base metals. The three-day conference, held over 5-7 January, 2024 in Delhi, was organised by The Bombay Metal Exchange Ltd (BME), the apex body of the non-ferrous metals industry, with BigMint as a knowledge partner.

Key takeaways:

QCO implementation deferred: Implementation of the Quality Control Order (QCO) for aluminium, copper, and nickel, issued by the Ministry of Mines on 31 August, 2023, has been extended to 1 June, 2024. Initially, the date of implementation had been 30 November, 2023. The implications of this order is that, after this date, manufacturing, selling, or importing these metals without the BIS Standard Mark and a valid BIS license is prohibited. The order excludes aluminium, copper, and nickel powder meant for exports.

Aluminium QCO: In the case of the Aluminium and Aluminium Alloy Products (Quality Control) Order, 2023, the same had been issued by DPIIT, Ministry of Commerce and Industry, on 25, September, 2023. For large-scale and medium-scale enterprises, the date of implementation of the QCO is six months from the date of publication, ie, 25 March 2024. For small scale enterprises, the date of implementation of the QCO is nine months from the date of publication, ie, 25 June, 2024. For micro scale enterprises, the date of implementation is 12 months from the date of publication -- ie, 25 September 2024.

This order does not apply to aluminum and aluminum alloy products meant for export.

Copper QCO: DPIIT, Ministry of Commerce and Industry, had issued the Copper Products (Quality Control) Order (QCO), 2023 on 17 October, 2023. For large scale and medium scale enterprises, the date of implementation is six months from the date of publication, or 17 April 2024. For small-scale enterprises, the date of implementation is nine months from the date of publication -- 17 July 2024, and for micro-scale enterprises, the date of implementation of the QCO is 12 months from the date of publication, ie, 25 October 2024. This order does not apply to copper products meant for export.

New initiatives: New initiatives from BIS include sharing testing facilities between MSMEs, and utilisation of cluster-based testing facilities by these units. Other proposals include relaxation in the norms for having a fully equipped laboratory for MSMEs for the purpose of conformity assessment.

Also, manufacturers can define their own levels of controls. Additionally, product-specific capsule courses and customized training programmes are being introduced.

Zinc standards: In base metals, three zinc standards have been merged into one, aligning with international practices. The term has changed from "primary zinc" to "refined zinc." The LME grade Zn99.995 has been aligned with global standards. Two new grades of primary lead ingots, Pb99.985 and Pb99.995, follow international standards and trade on the LME platform.

New tin, nickel standards: Four new grades in tin, namely Sn99.90, Sn99.93, Sn99.95, and Sn99.99, have been added without changing their compositions (Sn99.75 and Sn99.85). Two new nickel grades, NR9995 and NR9990, have also been included, trading on various commodity exchange platforms globally and locally.