India’s Copper Demand Soars by 13% Amid Robust Economic Growth

India’s copper demand reached 1,700 kilotonnes (kt) in FY2024, marking a 13% year-on-year increase, according to a release from the International Copper Association India (ICA India). This surge is attributed to the country’s overall economic expansion, with average annual copper demand growing by 21% per year post-pandemic.

Domestic production of copper cathodes also rose by 8% during FY2024, while net imports of various forms of copper increased by 13%. The building construction and infrastructure sectors, which together account for 43% of copper demand, remain key drivers. According to the latest GDP data, these sectors grew by 9.1% and 6.8%, respectively, during the first half of FY2025, reflecting the strong link between copper usage and economic growth.

Mayur Karmarkar, Managing Director of ICA India, highlighted the double-digit growth in copper demand across sectors such as building construction, infrastructure, transportation, industrial, and consumer goods, fueled by public and private investments and higher consumer spending. “The trends reflect robust growth in copper demand, aligning with India’s GDP growth trajectory,” he noted.

However, India’s domestic refined copper production has largely remained flat due to the closure of Vedanta’s Tuticorin smelter. With Hindalco’s smelter as the only major operational facility, domestic cathode production fell by 7% in FY2024, primarily due to maintenance activities in the first quarter. Consequently, net cathode imports surged by 103% during the same period.

India’s secondary copper supply also saw significant growth. The country generated 468 kt of end-of-life and process copper and alloy scrap in FY2024, supplemented by an additional 192 kt of imported scrap. This represents a 15% increase in overall secondary scrap supply. However, reliance on direct melting of diverse scrap types raises quality concerns for high-conductivity applications due to tramp elements that cannot be easily removed during remelting.

Karmarkar emphasized the potential for India to develop a robust copper ecosystem. The operationalization of Adani’s copper smelter by the third quarter of FY2025, along with duty exemptions on copper concentrates and blisters, is expected to boost domestic production. “These advancements, coupled with sustained demand growth, position copper as a key enabler of India’s technological and economic aspirations,” he added.

Additionally, the implementation of the Quality Control Order (QCO) for copper products is anticipated to improve long-term quality standards by ensuring adherence to strict regulations.