India's copper, zinc and lead production shows positive momentum m-o-m in Aug'23

In August 2023, India's production of base metals showed promising m-o-m improvements. While aluminum production remained steady, other base metals experienced notable increases. Copper cathode production increased by 12%, zinc saw a 9% rise, and lead surged impressively by 25%.

These positive trends in base metals production aligned with the broader growth in industrial activity, signifying increased demand and production across various sectors of the economy. During the same month, the growth in manufacturing output reached 9.3%, electricity generation was up by 15.3%, and mining activities saw a 12.3% increase, as per the data released by the National Statistical Office (NSO).

Aluminium

In August 2023, India's aluminum production held steady at 348,000 tonnes (t) m-o-m. Additionally, when comparing August 2023 to the same period in the previous year (CPLY), production exhibited marginal growth of approximately 2%, with 342,000 t produced during the corresponding period last year.

India's primary aluminum smelting capacity totals approximately 4.1 million metric tonnes (mnt). In August 2023, notable contributions from key industry players were as follows: Vedanta Ltd. produced 148,000 t, Hindalco contributed 113,000 t, BALCO produced 49,000 t, and NALCO's production reached 38,000 t. In terms of company-specific production, there was a marginal increase in August 2023 compared to July, except for Vedanta, which experienced a 1% decline.

Copper

Copper cathode production in August 2023 saw a 12% m-o-m increase, reaching 47,000 t compared to the previous month's 42,000 t. However, when examining the y-o-y data, copper cathode production decreased by 6% in August 2023 compared to 50,000 t in the same period of the previous year (CPLY). Hindalco emerged as the major contributor, with a production of 35,000 t, followed by Sesa Sterlite (Vedanta) with 12,000 t of copper cathode.

Although there has been a recent uptick in monthly production, India's copper production experienced a substantial setback after Vedanta's smelter and refinery plant in Tamil Nadu was permanently closed in May 2018. This shutdown has resulted in India shifting from being a copper exporter to becoming a net copper importer.

On the other hand, Adani Group is set to launch its copper facility, Kutch Copper Limited, in Mundra, Gujarat, in March 2024, aiming to bolster India's copper supply and reduce reliance on imports. With an annual capacity of 1 million tonnes (mnt), this greenfield refinery will produce copper cathodes and rods. It plays a vital role in addressing India's increasing copper demand for sectors like infrastructure and renewable energy, potentially satisfying up to half of the country's copper needs.

Conversely, India saw a decline in copper ore and concentrates production, with a 11% m-o-m drop, totaling 305,000 t in August 2023 compared to 343,000 t in July. Hindustan Copper Limited (HCL), as the sole primary producer, accounted for the entire production of 305,000 t of copper ores and concentrates in August 2023.

Zinc

In August 2023, zinc production rose by 9% m-o-m to 63,000 t versus 58,000 t in July. Similarly, zinc production witnessed a gain of 3% y-o-y from 61,000 t in August 2022.

India's primary zinc smelting capacity stands at about 912,000 t. Hindustan Zinc Limited (HZL) is India's sole refined zinc producer, contributing around 63,000 t in August 2023.

Lead

India's lead production increased significantly in August 2023 to 20,000 t. However, lead production dropped by 5% y-o-y in August 2023 from 21,000 t in the CPLY.

India's installed capacity for lead primary production is 204,000 t per year. HZL is the sole producer of refined lead with an output of 20,000 t in August 2023.