India’s copper demand grows by 13% y-o-y growth rate

India’s copper demand has surged remarkably by 13% y-o-y growth rate, reflecting the nation’s economic momentum. Driven by robust growth in sectors like building construction, infrastructure, and consumer goods, copper consumption has seen double-digit growth. However, challenges in domestic production and quality concerns highlight the need for a stronger copper ecosystem.

A recent demand study conducted by the International Copper Association India reveals a 13% year-on-year growth in copper demand in FY2024, reaching 1700 kilotonnes (kt). This significant increase is attributed to the overall economic growth of the country. Post-pandemic, India experienced an impressive 21% annual growth in average copper demand between FY2021 and FY2024.

The building construction and infrastructure sectors continue to play a pivotal role in driving copper demand in India. According to the latest GDP data, these sectors achieved growth rates of 9.1% and 6.8%, respectively, in the first half of FY2025. Domestic production of copper cathodes rose by 8%, while net imports of various forms of copper increased by 13% during the same period. Traditionally, building construction and infrastructure account for 43% of India’s copper demand while contributing 11% to the GDP.

Mayur Karmarkar, Managing Director of International Copper Association India, stated, “The trends reflect robust growth in copper demand, aligning with India’s GDP growth trajectory. 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.”

Despite the consistent rise in demand, India’s domestic refined copper production has remained relatively stagnant for years due to the closure of Vedanta’s Tuticorin smelter. With Hindalco being the sole operator, domestic cathode production decreased by 7% in FY2024, primarily due to significant plant maintenance in the first quarter. Net cathode imports saw a sharp rise of 103% in FY2024.

In FY2024, India generated 468 kt of end-of-life and process copper and alloy scrap, complemented by net imports of 192 kt of copper and alloy scrap. Overall, the supply of secondary scrap increased by 15%.

Currently, India relies heavily on direct scrap melting, leading to variable copper purity levels due to the diverse types of scrap used. This direct remelting process raises concerns about tramp elements in applications requiring high electrical conductivity. The Quality Control Order (QCO) for copper products is expected to resolve these quality issues over time by ensuring strict adherence to copper standards in India.

Karmarkar added, “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 & 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.”