Adani

Copper Wire & Tube Imports Hit Multi-Year Highs in FY25 Amid Cathode Shipment Drop

Regulatory disruptions and surging downstream demand reshape India’s copper trade, with new smelter capacity poised to alter the landscape.

Introduction
During FY2025, India witnessed a major shift in its copper trade dynamics, with imports of copper wire, tubes, and sheets reaching multi-year highs, even as copper cathode shipments fell by 34% year-on-year.
This divergence was triggered by regulatory changes, supply chain disruptions, and robust demand from key sectors like infrastructure, power, and electric vehicles. As new domestic smelting facilities become operational, the industry is preparing for a further shift in the upcoming quarters.

Regulatory Shock: The Quality Control Order and Its Ripple Effects
The sharp fall in copper cathode imports in FY25 can be traced to the imposition of a stringent quality control order (QCO) by the Indian government, effective December 1, 2024. The QCO requires all domestic and international copper cathode manufacturers to obtain Bureau of Indian Standards (BIS) certification prior to supplying in India.
This move, aimed at ensuring quality and safety, had unintended consequences: major exporters, especially from Japan, faced delays in obtaining certification, leading to a three-month supply disruption.
Copper cathode imports head a steep decline, it drop from a monthly average of 27,000 tonnes between April and November 2024 to just 2,000 tonnes per month during the December to February period.
Imports recovered to 16,000 tonnes in March 2025 as certification issues were resolved, but the impact was significant—annual cathode imports declined sharply to 239,000 tonnes from 363,000 tonnes the previous year.

Downstream Surge: Wire, Tube, and Sheet Imports Hit Record Highs
While cathode shipments dropped, imports of downstream copper products saw a significant surge.
In FY25, copper wire imports—mainly from the UAE—increased 17% to 154,000 tonnes, marking a five-year high, with their value rising 29% to ₹12,653 crore. Copper tubes and pipes, essential for air conditioning, refrigeration, and heat exchanger applications, increased by 30% to 114,000 tonnes—the highest level since FY18—worth ₹10,157 cr. Meanwhile, imports of copper plates, sheets, and strips—key components for electrical busbars and transformers—increased 49% to 30,000 tonnes, worth ₹2,725 crore.
This surge defied the QCO’s extension to downstream products, which was enforced from October 2024 for large and medium enterprises and later for smaller units. Several factors contributed to the import boom:
• Stockpiling ahead of regulatory deadlines
• Exclusions apply to specific tubes and products intended for export use
• Timely BIS certification for some foreign suppliers
• India’s status as the leading global importer of copper tubes highlights the magnitude of this demand, with the majority of imports coming from Vietnam, China, and Malaysia.

Demand Drivers: Copper’s Critical Role in India’s Economy
Copper is classified as a critical mineral in India, owing to its indispensable role in conventional and emerging technologies. It is the backbone of power transmission, air conditioning, electric vehicles, renewable energy infrastructure, and more. The country’s copper demand is expected to grow 10-13% in the latter half of FY25, fueled by infrastructure expansion and the green energy transition.
Despite the import surge, India still relies on foreign sources for about 30% of its copper cathode needs. The winding wire segment alone accounts for roughly half of cathode demand, and officials report no significant supply issues in downstream sectors during the QCO disruption.

Domestic Production: Recovery and New Capacity
On the supply front, domestic copper cathode production increased by 12.6% to 573,000 tonnes in FY25, driven primarily by Hindalco Industries (holding a 70% market share) and Vedanta’s Sterlite Copper (26%). The shutdown of Vedanta’s Tuticorin facility in 2018 shifted India’s status from a net exporter to a net importer of copper cathode.
A significant development this year is the debut of Adani’s Kutch Copper Ltd, which produced 22,000 tonnes in its inaugural year and aims to reach its full capacity of 500,000 tonnes by October 2025. Once fully operational, Adani’s smelter is expected to make India self-reliant in copper cathode, potentially curbing recent import growth and stabilizing domestic prices.

Legal and Industry Response
The QCO’s impact has not gone unchallenged. Two metals trade associations have petitioned the Union Mines Ministry, arguing that the new quality norms caused acute shortages and allowed domestic producers to hike prices. The government, however, maintains that no significant shortages occurred and that the certification process was communicated well in advance.

Outlook: What Lies Ahead?
India’s copper industry is reaching a pivotal moment. The recent import boom in wires, tubes, and sheets may moderate as the QCO’s effects stabilize and new domestic smelting capacity comes online. With Adani’s plant nearing full operation and existing players ramping up output, India could soon meet its entire cathode demand internally, reducing reliance on imports and potentially lowering costs for downstream industries.
However, with copper demand set to rise further—driven by electrification, green energy, and infrastructure—the sector will remain dynamic. Regulatory clarity, supply chain resilience, and continued investment in domestic capacity will be crucial for sustainable growth.

Meta Description
In FY2025, India saw a significant rise in copper wire, tube, and sheet imports, reaching levels not seen in years, even as copper cathode shipments dropped sharply by 34%, mainly due to regulatory hurdles.
As new domestic smelters come online, the industry expects a shift toward self-sufficiency, even as demand from infrastructure and green energy remains robust.

The image added is for representation purposes only