India’s copper demand elevated by 13 per cent year-on-year within the 2023-2024 fiscal, touching 1.7 million tonnes (mt), says a examine on annual copper demand undertaken by the Worldwide Copper Affiliation India (ICAI). The expansion has been attributed to general financial growth.
In line with the examine, a notable function of the expansion in demand for copper is that post-pandemic the common annual copper demand elevated by 21 per cent between 2020-2021 and 2023-2024.
An announcement from ICAI mentioned sturdy demand from building and infrastructure sectors continued to drive copper demand in India. Historically, building and infrastructure sectors account for 43 per cent of the copper demand whereas contributing 11 per cent to the GDP.
Flat output progress
The home manufacturing of copper cathodes rose by 8 per cent and internet imports of varied types of copper elevated by 13 per cent throughout the identical interval.
Mayur Karmarkar, Managing Director, Worldwide Copper Affiliation India, mentioned, “The (copper demand) progress is fuelled by private and non-private sector investments, greater client spending, and developments in key sectors like building, infrastructure, transportation, industrial and client items whereby copper demand grew by double-digits.”
Whereas demand has elevated, the expansion in India’s home refined copper manufacturing has largely remained flat for a few years because of the closure of Vedanta’s Tuticorin smelter.
With solely Hindalco’s smelter working, home cathode manufacturing fell by 7 per cent in 2023-2024, primarily as a consequence of main plant upkeep in first quarter of the fiscal. Internet cathode imports grew by 103 per cent in FY24.
Rise in scrap provide
ICAI mentioned India generated 4,68,000 tonnes of end-of-life and course of copper and alloy scrap which was additional supplemented by the online imports of a further 192,000 tonnes of copper and alloy scrap throughout the fiscal. The general secondary scrap provide elevated by 15 per cent.
At the moment, India primarily depends on the direct melting of scrap, leading to variable copper purity as a consequence of the usage of numerous scrap varieties. The direct remelting of copper in semi-fabrication models raises high quality considerations, particularly relating to tramp parts (parts that can’t be eliminated simply by the direct remelting course of) in electrical conductivity purposes.
The implementation of the standard management order (QCO) for copper merchandise is predicted to deal with the standard points in the long term by guaranteeing that copper utilized in India adheres to strict requirements, mentioned the ICAI managing director.
Karmarkar mentioned, “The tendencies spotlight India’s immense potential to develop a sturdy copper ecosystem. With Adani’s copper smelter being operational from Q3 FY25 and the obligation exemptions on copper concentrates and blisters the outlook for home manufacturing is promising.
“These developments, coupled with sustained demand progress, place copper as a key enabler of India’s technological and financial aspirations.”
