'India may turn net copper importer by 2012'

MUMBAI: The growing demand for copper combined with a lack of new refining capacities could result in India becoming a net importer of copper by 2012, according to Kishore Kumar, CEO, Sterlite Industries.

India’s demand for copper is expected to double by 2012. Currently, the country consumes half the production of 1 million tonne (mt) and exports the other half. “India’s supply is now more than the demand, but the gap could shrink by 2012,” Mr Kumar said, on the sidelines of a conference in Mumbai.

Demand for copper is going up with rising living standards. Anthony Lea, senior vice-president, International Copper Association (ICA), said, “The electrification of developing countries continues to be an enormous driver for copper demand growth in the power utility and building construction sectors.”

As copper prices have risen steeply, a number of countries are looking for alternatives to substitute copper. According to ICA, of the total global demand of 22.3 mt last year, about 0.3 mt (3 lakh tonne) was replaced with plastic substitutes, mainly in Europe.

However, this has not affected the majority market of wires and cables. “In developing economies, copper wire and cable demand play a critical role in driving demand growth,” said Mr Lea.

Peter Charlton, chairman of the International Copper Promotion Council (India), said in the process of building infrastructure, the latest energy-efficient technologies should be used to maximise power availability. “It is important to use the most energy-efficient solution right from the beginning, and India could leverage its advantage,” said Mr Charlton.

Reduced Chinese imports have softened copper prices, Mr Charlton said. China’s copper consumption growth was in double-digits in 2006, and looks to be strong this year as well. Demand is also expected to rise across Asian countries.

“There is enough copper in the world to last for a long time, but getting this copper into the supply chain is the challenge,” he said.