Copper demand in India experienced a remarkable 13% year-on-year growth in FY2024, reaching a total of 1,700 kilotonnes (kt), according to a recent release from the International Copper Association India (ICA India). This increase is largely attributed to the overall economic expansion in the country. Notably, post-pandemic, the average annual copper demand has surged by 21% per annum between FY2021 and FY2024.
The report highlights that domestic production of copper cathodes rose by 8%, while net imports of various forms of copper increased by 13% during the same period. The strong demand from the building construction and infrastructure sectors continues to be a significant driver of copper consumption in India. Recent GDP data indicates that these sectors recorded growth rates of 9.1% and 6.8%, respectively, in the first half of FY2025.
Traditionally, the building construction and infrastructure sectors account for 43% of copper demand while contributing 11% to the country’s GDP. Mayur Karmarkar, Managing Director of ICA India, stated, “The trends reflect robust growth in copper demand, aligning with India’s GDP growth trajectory. The growth is fueled by public and private sector investments, higher consumer spending, and advancements in key sectors like building construction, infrastructure, transportation, and industrial and consumer goods, where copper demand grew by double digits.”
Future Prospects Brighten with New Smelter Operations and Quality Control Measures
Despite the steady rise in demand, India’s domestic refined copper production has largely remained stagnant for several years, primarily due to the closure of Vedanta’s Tuticorin smelter. Currently, only Hindalco’s smelter is operational, and domestic cathode production fell by 7% in FY2024, mainly due to significant plant maintenance in the first quarter. Consequently, net cathode imports surged by 103% during the same period.
India generated 468 kt of end-of-life and process copper and alloy scrap, supplemented by net imports of an additional 192 kt of copper and alloy scrap in FY2024. The overall secondary scrap supply increased by 15%. However, the country primarily relies on direct melting of scrap, which raises concerns about copper purity due to the use of diverse scrap types. This direct remelting process can lead to quality issues, particularly regarding tramp elements that affect electrical conductivity applications.
Karmarkar emphasized the potential for India to develop a robust copper ecosystem, noting that with Adani’s copper smelter set to become operational in Q3 FY2025 and the duty exemptions on copper concentrates and blisters, the outlook for domestic production is promising. He added, “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 long-term quality issues by ensuring that copper used in India adheres to strict standards.
