New Delhi: India’s demand for copper recorded a double-digit increase of 13 percent year-on-year to touch 1,700 kilotonnes in 2023-24 on the back of robust growth in the infrastructure and construction sectors, according to figures compiled by the International Copper Association India.

International Copper Association India (ICAI) said in a statement that building construction and infrastructure account for 43 percent of copper demand while contributing 11 percent to GDP.

This surge is attributed to overall economic expansion. The industry body said that after the COVID-19 pandemic, the average annual copper demand increased by 21 percent between FY21 and FY24.

The association expects copper demand to increase further as big-ticket infrastructure projects and building construction segments continue to grow rapidly.

According to the latest GDP figures, the infrastructure and construction sectors grew by 9.1 percent and 6.8 percent, respectively, in the first half of the current financial year.

Mayur Karmarkar, Managing Director of International Copper Association India, said, “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, and industrial and consumer goods, wherein copper demand grew by double-digits.

During the same period, domestic production of copper cathodes rose by 8 percent, and net imports of various forms of copper increased by 13 percent.

Karmarkar said, “The trends highlight India’s immense potential to develop a robust copper ecosystem. With Adani’s copper smelter being operational from Q3 FY25 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,” he added.

ICAI said India generated 4,68,000 tonnes of end-of-life and process copper and alloy scrap, which was further supplemented by net imports of an additional 1,92,000 tonnes of copper and alloy scrap during the fiscal year. The overall secondary scrap supply increased by 15 percent.

Currently, India primarily relies on the direct melting of scrap, resulting in variable copper purity due to the use of diverse scrap types. The direct remelting of copper in semi-fabrication units raises quality concerns, especially regarding tramp elements (elements that cannot be removed easily by the direct remelting process) in electrical conductivity applications.

The ICAI managing director said the implementation of the quality control order (QCO) for copper products is expected to address quality issues in the long run by ensuring that copper used in India adheres to strict standards.

 

 

 

 

 

 

 

 

–IANS