Domestic production of copper cathodes increased by 8 percent and net imports of various forms of copper increased by 13 percent during the same period, ICA India said in a release. According to ICA India, strong demand from the construction and infrastructure sectors is driving the demand for copper in India. According to the latest GDP data, these sectors have registered a growth of 9.1 percent and 6.8 percent respectively in the first half of FY2025.
Traditionally, building construction and infrastructure accounted for 43 percent of copper demand while accounting for 11 percent of GDP. “Trends reflect strong growth in demand for copper, in line with India’s GDP growth trajectory.
International Managing Director Mayur Karmarkar said the growth was driven by public and private sector investment, higher consumer spending, and growth in key sectors such as building construction, infrastructure, transport, industrial and consumer goods. is where copper demand has grown by double digits. Copper Association India
While demand has grown steadily, growth in India’s domestic refined copper production has been largely flat for several years due to the closure of Vedanta’s Tuticorin smelter. According to ICA India, with only Hindalco’s smelter operating, domestic cathode production declined by 7% in FY2024, mainly due to major plant maintenance in the first quarter of FY2024. According to the release, net cathode imports increased by 103% in FY2024.
India produced 468 kt of copper and alloy scrap supplemented by net import of additional 192 kt of copper and alloy scrap in FY2024. Overall secondary scrap supply increased by 15%.
Currently, India mainly relies on direct smelting of scrap, which results in variable copper purity due to the use of diverse types of scrap. Direct melting of copper in semis fabrication raises quality concerns, particularly with respect to tramp elements (elements that cannot be easily removed by direct remelting processes) in electrical conductivity applications.
Karmarkar added, “The trends highlight India’s immense potential to develop a robust copper ecosystem. Adani’s copper smelter is operational from the third quarter of FY 2025 and copper concentrates and blisters But the duty waiver is promising for domestic production. These developments, coupled with continued demand, promote copper as a key enabler of India’s technological growth and economic aspirations.”
The implementation of Quality Control Order (QCO) for copper products is expected to address quality issues in the long run by ensuring implementation of stricter standards for copper used in India.