India Witnesses Significant Rise in Copper Demand Driven by Infrastructure Growth

New Delhi, Dec 10 (NationPress) India's demand for copper has seen a remarkable year-on-year increase of 13 percent, reaching 1,700 kilotonnes in 2023-24, driven by significant advancements in the infrastructure and construction industries, as reported by the International Copper Association India.

Building construction and infrastructure make up 43 percent of copper demand, contributing 11 percent to the GDP, the International Copper Association India (ICAI) stated.

This increase is linked to the overall economic growth in the country. Post the Covid pandemic, the average annual copper demand surged by 21 percent from FY21 to FY24, according to the industry body.

The association anticipates that the demand for copper will continue to rise as major infrastructure projects and building construction activities expand rapidly.

Recent GDP data shows that the infrastructure and construction sectors experienced growth rates of 9.1 percent and 6.8 percent, respectively, during the first half of the current financial year.

Mayur Karmarkar, Managing Director of the International Copper Association India, remarked, "The trends indicate strong growth in copper demand, which aligns with India's GDP growth trajectory. This growth is driven by investments from both the public and private sectors, increased consumer spending, and advancements in critical sectors such as building construction, infrastructure, transportation, and consumer goods, where copper demand has experienced double-digit growth."

During the same time frame, domestic production of copper cathodes rose by 8 percent, and net imports of various copper forms increased by 13 percent.

Karmarkar noted, “These trends underscore India's vast potential to establish a robust copper ecosystem. With Adani's copper smelter set to commence operations in Q3 FY25, along with the duty exemptions on copper concentrates and blisters, the outlook for domestic production appears encouraging.”

“These developments, combined with persistent demand growth, position copper as a crucial enabler for India’s technological and economic goals,” he added.

ICAI reported that India generated 468,000 tonnes of end-of-life and process copper and alloy scrap, which was supplemented by net imports of an additional 192,000 tonnes of copper and alloy scrap during the fiscal year. The total secondary scrap supply increased by 15 percent.

At present, India primarily depends on the direct melting of scrap, resulting in inconsistent copper purity due to the varied types of scrap utilized. The direct remelting process in semi-fabrication units raises quality concerns, particularly regarding tramp elements (elements that are difficult to remove during direct remelting) affecting electrical conductivity applications.

The introduction of the quality control order (QCO) for copper products is anticipated to resolve long-term quality issues by ensuring that the copper utilized in India meets stringent standards, as stated by the ICAI managing director.