Indian copper manufacturers are lobbying the government for domestic tax concessions, arguing that unprecedented metal prices are tying up substantial working capital across the entire supply chain.

Rohit Pathak, chairman of the Indian Primary Copper Producers Association, stated on Wednesday that the group is in negotiations with authorities to slash the Goods and Services Tax (GST) on a broad range of copper products from 18% to 5%. He noted that this adjustment could unlock as much as $3.6 billion in funds currently immobilized by tax payments.

Copper prices have repeatedly shattered records this year, with three-month contracts on the London Metal Exchange (LME) climbing above $14,700 per tonne during the month. This dramatic surge has intensified cost pressures across India's industrial landscape.

Domestic supply constraints have compounded the issue, as India has leaned heavily on copper imports ever since Vedanta Ltd.'s Sterlite smelter was shuttered in 2018, leaving local producers more exposed to global price swings.