India's copper concentrate imports decline nearly 20% m-o-m in July'24

In July 2024, India witnessed a sharp decline in its copper concentrates imports, which fell by 18% m-o-m. The total volume imported dropped to 60,575 tonnes (t), compared to 73,557 t in June 2024. This reduction follows changing supply dynamics and disruptions in the global copper market, which have impacted India's ability to secure raw materials for its domestic copper industry.

Sharp drop in imports from key suppliers

The decline was particularly pronounced from two major suppliers - Chile and Australia. Imports from Chile, a key exporter of copper ore to India, plummeted by 58% in July 2024 compared to the previous month. Similarly, imports from Australia also dropped significantly, down by 36% m-o-m. These substantial reductions indicate potential challenges in sourcing from these regions, be it logistical issues, production slowdowns, or market adjustments.

Y-o-y decline raises concerns

The decline in copper concentrates imports is not only an m-o-m trend but has also been seen on a y-o-y basis. Compared to July 2023, when India imported 80,960 t, the volume in July was 25% lower. This significant decrease has raised concerns about the overall availability of copper ore in the Indian market and its implications for copper production.

Dahej Port emerges as key unloading point

In July, the majority of copper concentrates was unloaded at Dahej Port, reinforcing its importance as a primary hub for these imports. In contrast, other major ports such as Hazira/Surat and Mundra reported no significant unloading activity, possibly indicating logistical shifts or port-specific challenges.

Total imports in first 7 months of 2024

In the first seven months of 2024, India imported a total of 566,839 t of copper concentrates, down by around 3% y-o-y compared to 584,169 t in the same period of 2023. Despite this overall decline, imports from certain countries showed notable increases.

Import surge from key countries

Chile: Imports from Chile surged by 55%, reaching 229,111 t in the January-July 2024 period.

Indonesia: Imports from Indonesia increased by 50%, totalling 188,678 t in the same period.

Australia: Imports from Australia rose by 14% to 60,505 t.

Outlook for India's copper industry

Indonesia's plan to stop copper concentrate exports by December 2024 could disrupt India's copper industry, which relies heavily on these imports. The move may create supply issues for Indian smelters, especially as demand has risen with the Adani Group's Kutch Copper Plant coming online.

To mitigate this, industry experts have suggested reducing or eliminating import duties on copper concentrates from other sources. The Indian government is working on solutions, including potential agreements with African countries and Peru. Domestic demand for copper is expected to continue growing, driven by infrastructure and clean energy initiatives.