India: Copper demand soars by 13% y-o-y in FY'24, driven by growth in key sectors

• Demand from net-zero transition tech surges 27% y-o-y
  
  
• Building and construction demand up 15% y-o-y, especially from copper wires and cables.
  
  

Domestic copper demand increased by 13% y-o-y in FY'24, to 1.71 million tonnes (mnt) from 1.52 mnt in FY'23, according to the International Copper Association of India's annual study. The data highlights that growth in key sectors boosted the country's copper demand in FY'24.

Key drivers of copper demand

• Building construction: Demand from building construction saw a 15% y-o-y growth in FY'24, driven by the increasing use of appropriately sized copper wires and cables to enhance building safety. The construction sector's gross value added (GVA) grew 9.9% y-o-y, and demand for premium and luxury housing surged 75% y-o-y, further fuelling the rise in copper demand.
  
  
• Infrastructure expansion: The infrastructure sector's demand expanded by 14% y-o-y in FY'24. This is attributed to increased demand for copper cables and transformers, particularly in the transmission and distribution (T&D) sector.
  
  
• Transportation sector: Demand from the transportation sector experienced robust growth, fuelled by a 41% y-o-y surge in electric vehicle (EV) sales, particularly in the two-wheeler (2W) and three-wheeler (3W) segments.
  
  
• Net-zero transition technologies: Copper demand associated with net-zero transition technologies, including EVs and renewable energy systems, surged 27% y-o-y, making up 4% of India's total demand. Solar and renewable energy capacity additions alone increased by 21% y-o-y, highlighting the critical role of copper in India's energy transformation.
  
  
• Consumer durables: Demand from the consumer durables sector rose 14% y-o-y in FY'24. In particular, sales of air conditioners (ACs) registered a 19% y-o-y growth to 11.5 million units. Additionally, copper density in domestic fans increased, driven by the mandatory Star Labelling programme, which further boosted copper demand in this segment.
  
  
• Industrial sector: Demand associated with the industrial sector increased by 10% y-o-y in FY'24, supported by favourable government initiatives and a 9.9% y-o-y growth in manufacturing GVA.
  
  
• Others: Demand from other sectors, including agricultural pumps, grew 8% y-o-y. Demand for solar agricultural pumps, in particular, increased by 18%.
  
  

Copper consumption in FY'24

Refined copper: India's domestic refined copper production in FY'24 totalled 524,000 tonnes (t), which included 22,700 t of metal-in-concentrate supplied by Hindustan Copper, along with concentrate imports; anode imports of 194,000 t; and 500 t of blister imports. With 363,000 t of cathode imports and 28,000 t of exports, India's total cathode consumption stood at 859,000 t, highlighting the country's reliance on both domestic production and imports to meet demand.

Secondary copper: India's secondary copper consumption from brass scrap rose 38% y-o-y in FY'24, totalling 237,000 t. This volume consisted of 166,000 t of locally sourced direct melt and 73,100 t of imports of the same, excluding 2,200 t for export.

Other copper products

• Copper rods: India's copper rod consumption totalled 1,109,000 t, with 1,088,000 t produced domestically, including 124,000 t of imports, and excluding 103,000 t exported.
  
  
• Tubes and pipes: India's total tubes and pipes consumption amounted to 159,000 t, consisting of 71,000 t from domestic production and 93,600 t from imports and excluding 5,300 t of exports.
  
  
• Finished goods: Finished goods consumption stood at 61,000 t, with 195,000 t produced domestically and 134,000 t exported.
  
  

Key takeaways

Rising standards of living, increased public and private investments, and favourable government policies continue to underpin the robust growth in copper demand. Future prospects appear promising, with infrastructure and sustainable technology adoption acting as pivotal growth levers for India's copper consumption.

This demand trajectory underscores the growing importance of copper as a cornerstone for India's industrial and sustainable development.

Learn about the copper market outlook from experts at the Bombay Metal Exchange Conclave 2025, taking place from January 3rd to 5th at The Westin, Powai, Mumbai. This leading industry event unites key stakeholders from the non-ferrous metals sector to discuss global trends, sustainability efforts, and technological innovations.