India's copper demand grows by 27% in FY22
According to a report by International Copper Association India (ICA India), India's copper demand is back on the growth track in FY22, registering a year-over-year (YoY) growth of about 27.5%. The demand for red metal stood at 12.5 lakh tonnes in FY22, as compared to 9.78 lakh tonnes in FY21.
The increase in copper demand also resulted in copper producers increasing their production. Indian integrated producers increased their copper wire rod production by 28.7% YoY as the demand increased in FY 22.
The demand for energy-efficient electrical goods and better-quality power will rise with the growing affordability and the growth in India's middle class, said Mr. Mayur Karmarkar, Managing Director, ICA India. There is a need for India to develop a copper resource strategy ensuring India's Amrit Kaal vision is achieved, he added.
The report highlighted that 36% of the country's demand was met through scrap and the rest 64% through primary copper. Whereas in terms of sector-wise growth, copper usage in building construction grew by 25.3% and copper demand for the industrial sector grew by 26.3%. Furthermore, the government's push to boost power infrastructure resulted in a 75.7% growth in copper demand from this sector. The consumer durables sector also witnessed a growth in demand for copper by 15%.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.