India's Copper Demand Surges Amid Economic Growth

India's copper demand climbed 13% year-on-year in FY2024, driven by economic growth and increased infrastructure investments. While domestic production saw challenges, net imports and scrap supply significantly supplemented demand. Quality concerns persist, but policy measures and new smelter operations offer optimistic prospects for the sector.

In FY2024, India's copper demand surged by 13% year-on-year, reaching 1,700 kilotonnes, according to a report from the International Copper Association India (ICA India). This upswing is linked to the nation's broad economic expansion, with post-pandemic demand averaging a 21% annual increase from FY2021 to FY2024.

Domestic copper cathode production increased by 8% during this period, while net imports of various copper forms rose by 13%, ICA India noted. The construction and infrastructure sectors continue to be the primary drivers of copper demand, supported by a 9.1% growth in building construction and 6.8% in infrastructure as recorded in the first half of FY2025 GDP data.

Currently, building construction and infrastructure account for 43% of the nation's copper consumption and 11% of GDP. 'The trends reflect robust growth in copper demand, aligned with India's GDP trajectory,' stated Mayur Karmarkar, ICA India's Managing Director. Notwithstanding the steady demand, domestic refined copper production faced stagnation due to the closure of Vedanta's Tuticorin smelter, leading to a 7% drop in cathode output in FY2024.

The sector's outlook is promising, buoyed by Adani's upcoming copper smelter and duty exemptions. These developments could enhance copper's role in realizing India's technological and economic goals.

The introduction of the Quality Control Order for copper products aims to ensure compliance with stringent standards, mitigating long-term quality issues. (ANI)

(With inputs from agencies.)