Indian copper producers are seeking domestic tax relief, saying record metal prices have tied up large amounts of working capital across the supply chain. According to Sina Finance, Rohit Pathak, chairman of the Indian Primary Copper Producers Association, said on Wednesday that the group is negotiating with the government to cut goods and services tax on a range of copper products from 18% to 5%.

He said the policy change could free up as much as $3.6 billion currently tied up by tax payments. Copper prices have repeatedly hit record highs this year, and LME copper rose above $14,700 per ton this month. The price surge has intensified cost pressure in India, which has relied heavily on copper imports since Vedanta Ltd.'s Sterlite smelter closed in 2018.