Copper intake to grow 7-8 % per annum: Icra

With the expansion of telecom, power, construction, transportation, engineering and consumer durables sectors, the country's copper consumption is expected to grow six per cent in the current fiscal, analyst firm Icra said.

Copper consumption in the domestic market increased by 5.9 per cent in 2004-05 inspite of its sky-rocketing prices and decreased consumption worldwide, an Icra report said.

The country consumes 0.3 kg of copper per capita compared to the global average of three kg per capita. The ongoing expansion in power sector would help raise the demand by 7-8 per cent per annum, it added.

Increased demand of copper in the Asian markets had created a supply deficit of 2.8 mt in 2004. The demand supply gap would open export markets for Indian producers and fuel production activities.

The report predicts that copper consumption in the domestic market would be undettered by a decrease in demand from telecom sector, which consumes about 35-40 per cent of the metal produced in the country.

The increasing dependence of telecom sector on optical fibre would offer stiff competition to copper. This decline in demand however, would be countered by growth in other user segments such as winding wires and power cables.

Total availability of copper in the country is projected at 0.97 mt for 2006-07, including domestic production of 0.722 mt and imports of 0.245 mt.

With the current expansion projects undertaken by various players, the country would not only become self sufficient but would be in a position to export copper to fill the demand supply gap in the Asian markets, Icra said.