India’s per capita copper consumption may rise from 0.5 kg to 1 kg by 2025
It is projected that the demand for copper due to electric vehicles is expected to increase by 1,700 kilotons by 2027
India’s per capita copper consumption is expected to increase from the present level of 0.5kg to one kg by 2025. While infrastructure will spur demand growth of refined copper in the country, other key drivers would include thrust on increasing urbanisation, development of industrial corridors, smart city projects, housing for all Indians by 2022, National Highway development project, rail projects and defence production policy to encourage indigenous manufacture, Hindustan Copper chairman Santosh Sharma said.
In addition to this, the evolving market will have a substantial impact on copper demand. The market for electric vehicles (EV) is expected to witness growth in coming years as government incentives continue around the world including India by reducing GST. It is projected that the demand for copper due to electric vehicles is expected to increase by 1,700 kilotons by 2027. Another driver would be India's energy plan 2022--100GW solar, 32GW wind, 260GW thermal & nuclear, 62 GW hydro and and plan for green energy corridor for transmission of renewable energy.
During the fiscal 2018-19 the demand of refined copper products in the country was around 7 lakh tonnes and is expected to grow at 9-10% in tandem with economic growth in the country, he said.
World mine production is expected to grow by 1.9% in 2020. While it increased by about 2.3% to 20.56 million tonnes in 2018, it is forecast to remain unchanged in 2019. Global mining companies have taken up capacity enhancement projects and world copper mining capacity is estimated to reach 25.9 million tonnes in 2021, with 20% being from solvent extraction process.
Refined copper production is expected to rise by 2.8% in 2019, but is likely to be constrained in 2020 due to tightness in availability of concentrates with growth being restrained to around 1.2% in 2020 technical upgrades/modernisations.