India's base metal production grows m-o-m in Jul'24; copper output gains over 20%
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In July 2024, India's base metal production displayed positive trends. Aluminium production inched up by 3%, followed by zinc with a 2% increase. Lead production increased by 11%, and copper cathode production increased by 24%.
India's infrastructure output increased by 6.1% y-o-y in July, according to government data. This growth was driven by higher metal and electricity production. Infrastructure output, which represents 40% of India's industrial production, tracks activity across eight sectors, including refinery products and electricity.
Aluminium
In July 2024, India's aluminium production amounted to 355,000 tonnes (t), marking a 3% increase compared to 344,729 t in the previous month. On a y-o-y basis, aluminium production witnessed a slight rise of 2% in July 2024 compared with the corresponding period last year (CPLY).
India's primary aluminium smelting capacity totalled approximately 4.1 million tonnes (mnt). The steady production can be attributed to consistent demand in the Indian market.
The aluminium sector is primarily dominated by key players, including Vedanta, Hindalco, Balco, and Nalco. Among these major players, Vedanta, a significant contributor, witnessed a 3% increase in aluminium production, with its output totalling 154,000 t.
Meanwhile, Hindalco's production stood at 1,12,000 t, and Balco experienced a 4% increase, resulting in a production level of 50,000 t. Nalco witnessed a marginal 1% rise in aluminium production, producing 39,000 t during the same period.
Copper
Copper cathode production in July 2024 saw a 24% m-o-m increase to 46,000 t from the previous month's 37,000 t. On a y-o-y basis, copper cathode production increased by 10% in July 2024 compared to 42,000 t in July 2023. Hindalco emerged as the major contributor, with a production of 35,000 t, followed by Sesa Sterlite (Vedanta) with 11,000 t of copper cathode.
Conversely, India saw a 2% m-o-m decrease in copper ore and concentrates production, which totalled 259,000 t in July 2024, compared to 263,253 t in June 2024. Hindustan Copper Limited (HCL), the sole primary producer, accounted for the entire production of 259,000 t of copper ores and concentrates in July 2024.
India's copper consumption is on the rise due to heightened industrial activity and major infrastructure initiatives such as Bharatmala Pariyojana and the Smart Cities Mission. Meanwhile, Kutch Copper, a subsidiary of Adani Enterprises, is developing a 1-MTPA copper smelter at the Mundra Special Economic Zone, which is set to reach full capacity by 2028-29. This plant is expected to help enhance domestic copper production to meet rising demand.
Zinc
In July 2024, zinc production rose by 2% m-o-m to 67,000 t against 66,000 t in June 2024. Similarly, zinc production witnessed a gain of 16% y-o-y from 58,000 t in July 2023.
India's primary zinc smelting capacity stands at about 912,000 t. Hindustan Zinc Limited (HZL), India's sole refined zinc producer, contributed around 67,000 t in July 2024.
Lead
India's lead production increased in July 2024 to 21,000 t. Notably, lead production increased by 31% y-o-y in July 2024 from 16,000 t in the CPLY.
India's installed capacity for lead primary production is 204,000 t/year. HZL, the sole producer of refined lead, had an output of 21,000 t in July 2024.
