Domestic copper consumption is likely double by 2012 to 1.1 million tonnes on the back of increased demand from the power sector, said S K Sharma, vice-president, marketing, Hindalco Industries.
“As such, transformers and wire cables are going to be two major contributors to the domestic copper demand,” Sharma said.
Sharma sees domestic demand for refined copper at 0.4 million tonnes in 2008-09 (April-March).
A sharp fall in copper prices in the last few months has led to an increased domestic demand for refined copper this year, he said.
Local copper prices have plunged nearly 50 per cent to current levels in line with global prices.
At 2:19 pm, MCX April copper contract was at Rs 189.95 per kg, down 2.02 per cent from Saturday’s close.
“Domestic copper producers are concentrating on local (copper) demand than exports this year (2008-09) as the prices have fallen sharply,” he said.
He was speaking at Metals Outlook & Market Trends conference held in Mumbai on Saturday.
Sharma further said that local demand had picked up recently mainly because users of recycled copper had started using refined copper.
On exports Sharma said, “Of the total production this year, domestic consumption would be around 70 per cent and the balance would be exports”.
In 2007-08, exports were around 52 per cent of the production, while domestic demand was around 48 per cent.