Greater trust by the government on popularising Electric Vehicles through incentives and evolving regulatory measures would boost demand for copper, chairman cum managing director of Hindustan Copper Santosh Sharma said at the annual general meeting of the company.
“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,” Sharma told shareholders.
Indian scenario
In FY19, the copper ore production in India was 4.12 million tons (mt) 12 percent higher compared to FY18.
Refined copper production in FY19 was about 4.57 lakh tons (lkt), as compared to 7.65 lkt in FY18.
During FY19 demand of refined copper products was around 7 lkt and is expected to grow at 9-10 percent in tandem with economic growth in the country.
“Infrastructure will remain a strong pivot to the demand growth of refined copper in the country,” Sharma said.
Thrust on increasing urbanisation, development of industrial corridors, smart city project, housing for all Indians by 2022, National highway development project, new Indian Railways projects, defense production policy to encourage indigenous manufacture are some of the steps to fuel demand, he said.
“Per capita copper consumption in India is expected to increase from the current level of 0.5 Kg to 1 kg by 2025,” he said.
Global Perspective
During 2018, world mine production increased by about 2.3 percent to the level of 20.56 mt in metal terms and is forecast to remain unchanged in 2019 and then to grow by 1.9 percent in 2020.
“Global mining companies have taken up capacity enhancement projects and world copper mining capacity is estimated to reach 25.9 mt in 2021, with 20 percent being from solvent extraction process,” the HCL head said.
World refined Copper production has increased by about 1.98 percent during 2018 and reached to a level of 24.02 mt.
This story is from the August 2019 edition of Steel Insights.
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This story is from the August 2019 edition of Steel Insights.
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