Copper Demand in India Rises 13% in FY24 Driven by Infra and Building
ECONOMY & POLICY

Copper Demand in India Rises 13% in FY24 Driven by Infra and Building

Copper demand in India grew by 13 per cent year-on-year in FY24, reaching 1,700 kilotonne (kt), driven by strong demand from the building construction and infrastructure sectors, according to a report by the International Copper Association India.

The construction and infrastructure sectors, which together account for 43 per cent of copper consumption and contribute approximately 11 per cent to GDP, recorded growth rates of 9.1 per cent and 6.8 per cent, respectively, in the first half of FY25, according to GDP data.

Mayur Karmarkar, Managing Director of the International Copper Association India, commented that the trends reflected robust growth in copper demand, which aligned with India’s GDP growth trajectory. He added that this growth was fuelled by both public and private sector investments, increased consumer spending, and advancements in key sectors such as building construction, infrastructure, transportation, and industrial and consumer goods.

The report highlighted that post-pandemic, India’s copper demand has been on an upward trajectory, with an average annual growth rate of 21 per cent between FY21 and FY24. However, domestic refined copper production had remained largely flat due to the closure of Vedanta’s Tuticorin smelter. Hindalco’s smelter, the sole major producer currently, saw a 7 per cent decline in cathode production in FY24 due to maintenance activities in the first quarter, resulting in a 103 per cent rise in net cathode imports for the year.

India generated 468 kt of end-of-life and process copper and alloy scrap in FY24, complemented by net imports of an additional 192 kt of scrap, which increased the overall secondary scrap supply by 15 per cent.

Karmarkar noted that the direct remelting of diverse scrap types raised quality concerns, particularly for electrical conductivity applications due to impurities that could not be easily removed. He stated that the implementation of the Quality Control Order (QCO) for copper products would help address these quality issues in the long term.

Domestic production is expected to see a boost with the anticipated operationalization of Adani’s copper smelter in Q3 FY25. Furthermore, duty exemptions on copper concentrates and blisters are expected to support local production.

Karmarkar concluded that these developments, along with sustained demand growth, positioned copper as a key enabler of India’s technological and economic aspirations.

Copper demand in India grew by 13 per cent year-on-year in FY24, reaching 1,700 kilotonne (kt), driven by strong demand from the building construction and infrastructure sectors, according to a report by the International Copper Association India. The construction and infrastructure sectors, which together account for 43 per cent of copper consumption and contribute approximately 11 per cent to GDP, recorded growth rates of 9.1 per cent and 6.8 per cent, respectively, in the first half of FY25, according to GDP data. Mayur Karmarkar, Managing Director of the International Copper Association India, commented that the trends reflected robust growth in copper demand, which aligned with India’s GDP growth trajectory. He added that this growth was fuelled by both public and private sector investments, increased consumer spending, and advancements in key sectors such as building construction, infrastructure, transportation, and industrial and consumer goods. The report highlighted that post-pandemic, India’s copper demand has been on an upward trajectory, with an average annual growth rate of 21 per cent between FY21 and FY24. However, domestic refined copper production had remained largely flat due to the closure of Vedanta’s Tuticorin smelter. Hindalco’s smelter, the sole major producer currently, saw a 7 per cent decline in cathode production in FY24 due to maintenance activities in the first quarter, resulting in a 103 per cent rise in net cathode imports for the year. India generated 468 kt of end-of-life and process copper and alloy scrap in FY24, complemented by net imports of an additional 192 kt of scrap, which increased the overall secondary scrap supply by 15 per cent. Karmarkar noted that the direct remelting of diverse scrap types raised quality concerns, particularly for electrical conductivity applications due to impurities that could not be easily removed. He stated that the implementation of the Quality Control Order (QCO) for copper products would help address these quality issues in the long term. Domestic production is expected to see a boost with the anticipated operationalization of Adani’s copper smelter in Q3 FY25. Furthermore, duty exemptions on copper concentrates and blisters are expected to support local production. Karmarkar concluded that these developments, along with sustained demand growth, positioned copper as a key enabler of India’s technological and economic aspirations.

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