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New Delhi: Propelled by strong policy reforms across sectors, the post-pandemic demand for copper grew over 27.5% in India in FY22, according to a report released by International Copper Association India on Tuesday.

“The demand for red metal stood at 12.5 lakh tonne in FY22, compared to 9.78 lakh tonne in FY21 on the back of the growth across power infrastructure, real estate, consumer durables, and industrial sector in the country," the report said.

The uptick in demand also resulted in copper producers ramping up their production. Indian integrated producers increased their copper wire rod production by 28.7% YoY as the demand increased in FY22.

“With limited mining in India, (contributing 2.5% of total demand), India is dependent on imports of copper concentrate, anode and blisters for cathode production. The overall cathode production in India stood at 485 kilo tonne (KT) and imports at 134 KT. Domestic scrap (copper and brass) amounted to 312 KT with imports of 131 KT. The total input material available for fabricators was 979 KT," it said,

“With the focus on its vision of Amrit Kaal, several policy reforms of the government are targeted towards boosting the secondary sector of the economy. These reforms, including PLI scheme, national capital goods policy, 24x7 power to all, Make in India, NEMMP for EVs, and to become Net Zero by 2070 to name a few, have led to demand generation across key sectors relevant to copper resulting in improved copper demand to its pre-pandemic levels," Mayur Karmarkar, managing director, ICA India said.

The report highlighted that 36% of the country’s demand was met through scrap and 64% through primary copper. Cathode, rod and tubes import stood at 297 KT.

In terms of sector-wise growth, copper usage in building construction sector grew by 25.3% while copper demand for industrial sector grew by 26.3% on the back of the strong domestic demand conditions and greater capacity utilisation.

The government’s push to boost power infrastructure resulted in 75.7% growth in copper demand from this sector. The consumer durables sector also witnessed a growth in demand for copper by 15% and copper demand in agriculture sector grew by 16.2%.

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