Copper demand sees 13% yoy growth in FY2024, reaches 1700 kilotonnes: ICA India

New Delhi [India], December 8 : The copper demand in the country witnessed a 13 per cent year-on-year growth in FY2024, reaching 1700 kilotonnes(kt), said International Copper Association India (ICA India) in a release.
This surge is attributed to overall economic expansion. Notably, post pandemic, the average annual copper demand increased by 21 per cent p.a. between FY2021 and FY2024.
The domestic production of copper cathodes rose by 8 per cent and net imports of various forms of copper increased by 13 per cent during the same period, ICA India said in the release.
The strong demand from building construction and infrastructure sectors continue to drive copper demand in India, as per ICA India. As per the latest GDP data, these sectors registered growth of 9.1 per cent and 6.8 per cent respectively in the H1 FY2025.
Traditionally, building construction and infrastructure accounts for 43 per cent of copper demand while contributing 11 per cent to GDP.
"The trends reflect robust growth in copper demand, aligning with India's GDP growth trajectory. The growth is fuelled by public and private sector investments, higher consumer spending, and advancements in key sectors like building construction, infrastructure, transportation, industrial and consumer goods wherein copper demand grew by double-digits," said Mayur Karmarkar, Managing Director, International Copper Association India.
While demand has risen steadily, the growth in India's domestic refined copper production has largely remained flat for many years due to closure of Vedanta's Tuticorin smelter. With only Hindalco's smelter operating, domestic cathode production fell by 7 per cent in FY2024, mainly due to major plant maintenance in first quarter of FY2024, as per the ICA India. The net cathode imports grew by 103 per cent in FY2024, as per the release.
India generated 468 kt of end-of-life and process copper and alloy scrap which was further supplemented by the net imports of an additional 192 kt of copper and alloy scrap in FY2024. The overall secondary scrap supply increased by 15 per cent.
Presently, India primarily relies on direct melting of scrap, resulting in variable copper purity due to the use of diverse scrap types. The direct remelting of copper in semis fabrication raises quality concerns, especially regarding tramp elements (elements that cannot be removed easily by direct remelting process) in electrical conductivity applications.
Karmarkar added, "The trends highlight India's immense potential to develop a robust copper ecosystem. With Adani's copper smelter being operational from Q3 FY2025 and the duty exemptions on copper concentrates and blisters the outlook for domestic production is promising. These advancements, coupled with sustained demand growth, position copper as a key enabler of India's technological and economic aspirations."
The implementation of the Quality Control Order (QCO) for copper products is expected to address the quality issues in the long run by ensuring that copper used in India adheres to strict standards.