India’s copper demand surged by 13% year-on-year, reaching 1,700 kilotonnes in 2023-24, fueled by strong performance in the infrastructure and construction sectors, according to the International Copper Association India (ICAI). The association’s data highlights that these sectors alone account for 43% of the country’s copper consumption and contribute 11% to the national GDP.
The increase in demand follows a trend of economic expansion post-COVID. Between FY21 and FY24, India’s annual copper demand grew by an average of 21%, reflecting broader growth across key industries.
ICAI projects continued growth in copper demand, driven by large-scale infrastructure projects and ongoing construction developments. The latest GDP figures show the infrastructure and construction sectors grew by 9.1% and 6.8%, respectively, in the first half of the current financial year.
Mayur Karmarkar, Managing Director of ICAI, attributed the surge to both public and private sector investments, alongside rising consumer spending and advances in sectors such as transportation, industrial goods, and consumer products. Copper demand in these areas has seen double-digit growth, aligning closely with the country’s overall GDP trajectory.
Domestic copper production also saw a positive trend, with copper cathode output increasing by 8%. Net copper imports grew by 13%, underscoring India’s reliance on global supplies to meet its growing needs.
Karmarkar emphasized that India’s potential for developing a self-sustaining copper ecosystem is significant, especially with upcoming projects such as Adani’s copper smelter, expected to start operations in Q3 FY25. He also pointed to duty exemptions on copper concentrates and blisters as a factor supporting the country’s production outlook.
India’s copper recycling efforts also contributed to the supply chain, with 468,000 tonnes of end-of-life and process copper and alloy scrap being generated, supplemented by 192,000 tonnes of imported scrap. The total secondary scrap supply grew by 15%.
Despite this, the country primarily relies on direct melting of scrap, which can result in variable copper purity, raising concerns over quality, particularly for electrical conductivity applications. The introduction of a quality control order (QCO) for copper products is expected to address these challenges and ensure stricter adherence to quality standards.
Karmarkar concluded that these developments, coupled with sustained demand growth, position copper as a critical enabler of India’s economic and technological ambitions.
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