Copper is one of the most useful and versatile metals and has been used by mankind longer than any other metal except gold. It has been used both in pure copper form and in alloy with a variety of other metals, especially tin (in bronze) and zinc (in brass).

High electrical and thermal conductivities, good resistance to corrosion, good ductility and malleability, high strength, lack of magnetism, and a pleasing red color are properties of copper that are the basis for vast industrial applications. The chronic gap between worldwide copper supply and demand projected to begin in the middle of this decade will have serious consequences across the global economy and will affect the timing of net-zero emissions by 2050. Copper demand in India is expected to reach ~1,692 KT by FY27 growing at a CAGR of 10% with building & construction estimated to hold the largest share of ~24%.

India’s export of copper concentrate to China has reduced from 100% to ~42% over the last 5 years with the Philippines and Malaysia emerging as the new export destinations. Chile & Indonesia continues to be the leading import countries for copper concentrate with an expected share of ~55% in FY22.

The Indian copper industry has established its oligopolistic nature with a handful of Indian enterprises such as Hindustan Copper Limited, Hindalco, and Vedanta leading the mining, beneficiation, and smelting & refining stages in copper value chain. Moving further downstream in the processing chain of copper, it is reasonably clear that concentration in the semi-fabricating industry is more diffused than in the mining, smelting, and refining stages. Players in the processing stage represent a mix of first buyers (involved in casting & slating processes) and second buyers (involved in final shaping of metal). Further, final products are manufactured for sale to end customers across industrial, infrastructure, telecom, building & construction, transport, and electronics segment

Refined copper demand in India is expected to reach 1,041 KT by FY22 driven by factors such as rural electrification, meeting renewable energy targets, expansion, and electrification of existing railway routes and increased adoption of electric vehicles in India. The government of India has introduced several schemes and campaigns such as production linked scheme, The Make in India, and Atmanirbhar Bharat which has encouraged the domestic production of refined copper in India. India witnessed a Y-o-Y increase in demand for refined copper post the Make in India campaign launch in September 2014. The demand for refined copper was majorly fulfilled by imports after the closure of the Tuticorin plant in 2018.

The automobile industry in India is a significant driver of macroeconomic growth and technological development. The overall automobile sale in India is expected to reach ~20.7 M units by FY27 growing at a CAGR of 2.9%. The market growth is anticipated to be fueled by new trends including the electrification of vehicles, particularly three-wheelers and small passenger automobiles as the share of electric vehicles is expected to reach 16% by FY27. Copper plays a critical role in the automobile industry by providing functionality and efficiency. Annual demand for copper in the automobile industry is expected to reach ~138KT by FY27 with electric vehicles accounting for 37% of the overall demand. All types of EVs require a substantial amount of copper. It is used in batteries, copper rotors used in electric motors, wiring, busbars, and charging infrastructure.

Each type of EV uses considerably more copper than traditional vehicles with internal combustion engines. Overall, the demand for copper in electric vehicle segment is expected to reach ~51KT by FY27 growing at a CAGR of ~58% driven by high copper requirement in the EV 4-wheeler segment. The average copper usage per unit in electric 4-wheelers is ~66 kg / unit.

Concentrates are the raw material for all copper smelters, which by processing obtain an impure form of metallic copper, anode, or blister copper, which is later used to produce high purity refined copper. China has been the leading export destination for India’s copper concentrate produce till FY21. The Philippines and Malaysia have emerged as the new export destinations for copper concentrate with the Philippines having an expected share of ~46% in India’s overall export of copper concentrate in FY22. Chile & Indonesia continues to be the leading import countries for copper concentrate with an expected share of ~55% in FY22.