Copper Demand in India Rises by 16% Amid Economic Recovery
Rebounding from the Pandemic
India's copper demand has witnessed a significant rise, reaching 1,522 KT in 2023, up from 1,311 KT the previous year. This surge marks a recovery following the demand contraction in FY21, a period heavily impacted by the COVID-19 crisis. The consistent double-digit growth underscores a positive economic turnaround and presents a substantial opportunity for further investment in India's copper industry.
Growth Drivers
Several factors contribute to this robust demand, with notable developments in sectors like construction, renewable energy, electric mobility, industrial machinery, and consumer electronics. Policy reforms and investments from both public and private sectors have reinforced the demand trajectory.
Particularly, the transportation sector has seen a 34% uptick in copper demand, driven by projects in railway modernization, expansion in rapid transit systems, and a surge in electric vehicle adoption. Simultaneously, copper usage in the construction sector grew by 11%, with significant applications in high-end residential projects.
The Indian government's Production-Linked Incentive (PLI) scheme has also catalyzed capital expenditure in various industrial sectors, inviting INR 1.7 lakh crore in investments and subsequently boosting copper demand.
Consumer Electronics and Sustainability Efforts
The consumer durables sector has rebounded, displaying considerable demand for products like air conditioners and various electronic devices, a trend powered by the release of pent-up demand from restrictive pandemic periods and growing disposable incomes.
Copper's role extends beyond immediate industrial demand, touching upon larger environmental concerns. The metal's use in clean energy technologies highlights its contribution to reducing global greenhouse gas emissions, underscoring copper's integral part in sustainable development initiatives.
To meet this burgeoning demand, India ramped up its production of refined copper and increased its reliance on imports, emphasizing the nation's growing role in the global copper market.
