Copper Usage Increases by 16%, Increased Demand from all Sectors
The demand for copper in India has experienced a significant increase of 16 percent, reaching 15.22 lakh tonnes in 2023 compared to 13.11 lakh tonnes in 2022. On Oct 27, the International Copper Association India (ICA India) released the Copper Demand Study in India (FY23), revealing its findings.
The growth that we see stems from a solid base of policy reforms, both public and private investments, and consumer expenditure across a range of sectors, including building construction, renewable energy, electric mobility, industrial development, railways and metros, power transmission and distribution, as well as white goods.
Following the contraction caused by the COVID-19 pandemic in FY21, the demand for copper has experienced consistent double-digit growth in consecutive years. New investments in the Indian copper industry are poised to experience continuous and substantial change based on the current trend.
The surge in copper demand has been primarily fueled by the transportation sector, encompassing automotive, railways, and metros. This sector has experienced an astounding 34 percent growth, playing a significant role in driving this upward trend. The reason for this can be ascribed to the advancements in electrifying and modernizing railways, the introduction of fast transportation, and a significant 21% increase in automobile sales driven by the growing popularity of electric vehicles (EVs).
The construction industry has witnessed an impressive 11% surge in copper demand. This notable increase is primarily due to the amplified utilization of copper per square foot, particularly in upscale residences targeting high and middle-income individuals. The announcement of INR 1.7 lakh Crore investments under the Production-Linked Incentive (PLI) scheme has stimulated capex expansion in various industrial sectors, consequently spurring a surge in copper demand.