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Informist, Tuesday, Dec. 10, 2024

 

MUMBAI – India's copper demand rose 13% to 1.7 million tonnes in the financial year 2023-24 (Apr-Mar), driven by firm demand from the construction and infrastructure sectors, the International Copper Association India said in a report Monday. The country's annual copper demand rose by an average 21?tween FY21 and FY24, due to overall economic expansion, it said.

 

"The trends reflect robust growth in copper demand, aligning with India's GDP growth trajectory," said Mayur Karmarkar, managing director, International Copper Association India. "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," Karmarkar said.

 

While demand for the red metal has risen steadily, the growth in domestic production of refined copper has remained largely flat for many years due to the closure of Vedanta's Tuticorin smelter, according to the report. Domestic production of copper cathodes fell by 7% in FY24 mainly due to major plant maintenance in the first quarter of the year. Import of cathodes on a net basis grew by 103% and imports of secondary copper rose by 15% in FY24 due to constrained domestic supply.

 

India primarily relies on direct melting of scrap, resulting in variable copper purity due to the use of diverse scrap types. The direct re-melting of copper in semi-fabrication raises concerns over quality, especially regarding tramp elements in electrical conductivity applications, the report said. Tramp elements cannot be removed easily by the direct re-melting process. However, the implementation of the quality control order for copper products is expected to address the quality issues in the long run.

 

India produced 468,000 tonnes of end-of-life and processed copper and alloy scrap, which was further supplemented by net imports of 192,000 tonnes of copper and alloy scrap in FY24, the association said.

 

"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," Karmarkar said.

 

At 1315 IST, the most-active December futures contract of copper was down 0.1% at INR 830.15 per kg on the Multi Commodity Exchange of India.  End

 

US$1 = INR 84.85

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Ashutosh Pati

Edited by Ashish Shirke

 

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