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India's new copper cathode rule risks supply shortages, trade body says

  • India imposed quality controls on copper cathode imports in December, leading to a decline in imports, as claimed by the Bombay Metal Exchange (BME) but rejected by the government.
  • The quality control rules require all suppliers to ensure checks on substandard products and obtain a license from the Bureau of Indian Standards.
  • Trade bodies, including BME and the Bombay Non-Ferrous Metals Association, challenged the quality controls in court, citing concerns about supply shortages and a potential monopoly.
  • The Indian government defended the quality control order, with Japanese suppliers dominating the market and concerns raised about compliance burdens and potential withdrawal by Japanese licensees.

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