India's copper demand has jumped to 1,522 KT in 2023, up from 1,311 KT the previous year, according to a study by the International Copper Association India (ICA India) released. The demand has registered double-digit growth for two years in a row following a contraction in FY21 due to the COVID-19 pandemic.
The boost is linked with policy reforms, both public and private sector investments, and increased consumer spending in multiple sectors including building construction, renewable energy, electric-mobility, industrial applications, railways & metros, power transmission & distribution, and white goods.
In construction, an 11% growth in copper demand is tied to its heightened usage per square foot in premium and middle-income housing. The government's Production-Linked Incentive (PLI) scheme has also played a part, sparking an investment of INR 1.7 lakh Crore in industrial sectors and thereby boosting copper demand.
The consumer durables sector has witnessed remarkable growth, stemming from the pent-up demand of FY21 and FY22 due to the pandemic. Products like Room Air Conditioners (RACs) and electronic devices, including laptops, PCs, and mobile phones, have seen increased demand, likely influenced by rising disposable incomes. Mayur Karmarkar, Managing Director, ICA India, said, "Indian copper demand is driven by economic growth and infrastructure development. With urbanization projected to rise from the current 36% to 43% by 2035, and the government's classification of the metal as a critical mineral, we anticipate sustained demand."
He further emphasized copper's role in green energy solutions, stating, "Copper aids in reducing up to two-thirds of global Greenhouse Gas Emissions (GHG). Using one tonne of copper in clean energy technologies can mitigate between 100 to 3,750 tonnes of GHG emissions, positioning copper as not just energy efficient, but also an economic metal." To meet the rising demand, production of refined copper (cathode) increased from 485 KT in FY22 to 563 KT in FY23. Additionally, net imports of refined copper surged by 180%, and there was a 22% rise in the utilization of secondary copper (direct melt).
