Domestic refined copper output is likely to decline by 40 per cent to 5,10,000 tonnes during FY19 on the back of permanent closure of Vedanta's Tuticorin smelter, domestic rating agency CARE Ratings today said.
"In light of the order of the permanent closure of the Tuticorin smelter, the production of domestic refined copper is expected to be around 510 KT during FY19 resulting in 40 per cent drop from the FY18 production levels," it said in a statement.
India's refined copper production during FY18 was 8,43,000 tonnes, it said.
The Tuticorin smelter accounts for 40 per cent of the country's copper smelting capacity, and has contributed to 48 per cent of the refined copper production during FY18, it added.
Tamil Nadu government had last month issued an order for permanent closure of the operation of Sterlite Copper plant in Tuticorin.
India has been a net exporter of refined copper (A grade quality) as there has been excess production in the domestic market.
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"Given that refined copper consumption is to increase in the given backdrop of robust infrastructure activities undertaken by the government, closure of the smelter will impact the trade dynamics of India, leading us to resort to additional imports changing the country from a net exporter to a net importer," the statement said.
India exported 3,44,000 tonnes and imported 37,000 tonnes of refined copper during FY18 (April-February), it added.