New Delhi/Mumbai — Demand for copper globally is set to jump 22% in as soon as five years on increasing usage of the metal in electric vehicles, solar and wind power sectors, according to Indian billionaire Kumar Mangalam Birla’s Hindalco Industries.
Consumption is expected to rise to 28-million tonnes in the 5-7 years from about 23-million tonnes now, JC Laddha, head of the Indian company’s copper unit, said in New Delhi at an industry conference. Electric vehicles alone will boost global copper demand by 1.2-million tonnes, he said.
India is also expected to benefit from the electric-vehicle push as Prime Minister Narendra Modi seeks to turn all passenger car sales electric by 2030, Laddha said. “But even without the demand from electric vehicles, demand should rise to 1.8-million tonnes to 2-million tonnes,” he said.
Copper has rallied more than 20% in 2017 this year along with other industrial metals on prediction of tighter supplies and increasing global economic growth amid new sources of demand. Top producer Codelco forecasts that prices could test record highs above $10,000 a tonne as the supply-demand balance shifts to substantial deficits from 2018.
India’s consumption is expected to grow by as much as 10% from 700,000 tonnes a year now, Laddha said. India has the potential to boost consumption of everything from copper to iron ore as its economy expands over the next two decades and more people flock to its cities, according to projections from the Australian government that examine whether the country will emulate China.
India will auction more copper mines to meet demand as the reliance mostly on foreign supplies makes the local industry “vulnerable,” mines secretary Arun Kumar said at the same industry event.
Bloomberg
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