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Indian Copper Demand Surges: 27 Percent Growth in FY22

Indian Copper Demand Surges: 27 Percent Growth in FY22

Indian Copper Demand Surges: 27 Percent Growth in FY22

  • 25-Jan-2023 12:28 PM
  • Journalist: Harold Finch

New Delhi [India]: Copper has made a remarkable comeback in the current financial year (FY22) from April 2021 to March 2022, showing impressive YoY growth of 27.5 % in India. The demand for red metal is at an all-time high, rising from 9.78 lakh tonnes in FY21 to 12.5 lakh tonnes in FY22 due to the booming power infrastructure, real estate, consumer durables, and industrial sectors across the country. The data comes from the Annual Report on Copper Demand in India (FY22), released by ICA India.

Demand for Copper has seen a significant increase in the last fiscal year, leading to Indian integrated producers increasing production of Copper wire rods by 28.7%. As a globally sourced commodity, it is mainly mined in the southern hemisphere while the northern hemisphere tends to be the largest consumer. India's own mining of Copper accounts for only 2.5% of total demand, leaving it heavily reliant on imports for Copper concentrate, anodes and blisters used in cathode production. Domestic scrap (Copper and Brass) totaled 312 KT with 131 KT imported, bringing the total input material available to fabricators up to 979 KT.

Mayur Karmarkar, Managing Director, ICA India said, "With the focus on its vision of Amrit Kaal, several policy reforms of the Government are targeted towards boosting the secondary sector of the economy. These reforms, including PLI scheme, national capital goods policy, 24x7 power to all, Make in India, NEMMP for EVs, and to become Net Zero by 2070 to name a few, have led to demand generation across key sectors relevant to Copper resulting in improved Copper demand to its pre-pandemic levels. With the growing affordability and the growth in India's middle class, the demand for energy-efficient electrical goods and better-quality power will rise. India is currently nearing the flex point of the wealth 'S' curve. After the economy reaches this point, the consumption of commodities grows at much higher rate than in the past."

"With limited capacities for cathode production currently operational in the country, India is depended on imports of cathode & semis to meet its demand. The remaining gap is filled by domestically generated scrap which lacks robust process of refining and remelting resulting in poor quality. In the current background of growing demand, globalization, and net zero ambitions of other developed & developing economies, there is a need for India to develop a Copper resource strategy ensuring India's Amrit Kaal vision is achieved successfully in a cost optimum way," he added.

According to a recent report, 36% of the country's demand for Copper was met through scrap and 64% came from primary Copper. Imports for cathode, rod, and tubes stood at 297 KT. Within the different sectors that use Copper, growth was seen in building construction (25.3%), industrial (26.3%), power infrastructure (75.7%), consumer durables (15%) and agriculture (16.2%). This surge in demand was made possible thanks to robust domestic conditions and greater capacity utilization.

Since its founding in 1959, the International Copper Association India (ICA India) has been a part of the global Copper Alliance, serving as the Indian arm of the International Copper Association Limited (ICA). Its members are dedicated to using Copper to improve quality of life through better electrical safety, energy efficiency, clean energy, and sustainability. ICA India has established an active association with many Copper users, working hard to advance better standards across various products, applications, and industries by taking advantage of Copper's superior technical performance.

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