Construction Industry Surge Drives Copper Demand in India

The robust demand from the construction and infrastructure sectors continues to propel the need for copper in India, as per ICA India. According to the most recent GDP figures, these sectors experienced growth rates of 9.1 percent and 6.8 percent, respectively, in the first half of FY2025. Historically, construction and infrastructure represent 43 percent of copper consumption while adding 11 percent to GDP.

"The trends reflect robust growth in copper demand, aligning with India's GDP growth trajectory. The growth is fuelled by public and private sector investments, higher consumer spending, and advancements in key sectors like building construction, infrastructure, transportation, industrial and consumer goods wherein copper demand grew by double-digits," said Mayur Karmarkar, Managing Director, International Copper Association India.

Although demand has consistently increased, the growth of domestic refined copper production in India has mostly stagnated for several years because of the shutdown of Vedanta's Tuticorin smelter. With just Hindalco's smelter in operation, domestic cathode output decreased by 7 percent in FY2024, primarily because of significant plant maintenance during the first quarter of FY2024, according to the ICA India. According to the release, the net imports of cathodes increased by 103 percent in FY2024.

In FY2024, India produced 468 kt of end-of-life and process copper and alloy scrap, further enhanced by net imports of 192 kt of copper and alloy scrap. The total supply of secondary scrap rose by 15 percent.