Core Insights - Gautam Adani's $1.2 billion copper smelter in Gujarat is operating at significantly reduced capacity due to a global supply squeeze affecting ore availability [1][2] - Kutch Copper Ltd. has imported only about 147,000 tons of copper concentrate, which is less than 10% of the 1.6 million tons required for full operation [2] - The copper supply chain is facing disruptions from major producers, impacting smelters globally and leading to record low treatment and refining charges [3][4] Company-Specific Insights - Kutch Copper Ltd. began processing metal in June but is struggling with raw material supply, which could lead to higher operational costs and extended ramp-up times [2][4] - The smelter's slow start highlights the challenges in India's ambition to enhance metals self-reliance amid rising demand from various sectors [6] - BHP Group has supplied a small quantity of 4,700 tons to the smelter, with additional shipments from Glencore Plc and Hudbay [5] Industry Insights - The global copper supply has been affected by mine disruptions from major companies, including Freeport-McMoRan and Codelco, exacerbating the supply squeeze [3] - China's expansion of smelting capacity has pressured profit margins, forcing some international producers to reduce output or shut down [3] - The current market conditions may lead to short-term losses for new entrants like Kutch Copper, but potential government tariffs could provide long-term benefits [5]

, which began processing metal in June after multiple delays, has brought in less than a 10th of the raw material required, according to customs data. In the 10 months to October, it imported about 147,000 tons of copper concentrate. Competitor The smelter requires about 1.6 million tons of concentrate to function at full strength, Bloomberg reported earlier.Questions sent to the BloombergLive EventsAs a result, treatment and refining charges — the fees miners pay for processing — have hit a record low thi ...