The growing demand for copper combined with a lack of new refining capacities could make India one of the largest copper importers in the world, experts said.
According to Kishore Kumar, CEO, Sterlite Industries, India's demand for copper will double by 2012. Currently, India 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," Kumar said, during a conference on copper in Mumbai adding: "Demand for copper is going up with rising living standards."
Anthony Lea, senior vice-president, International Copper Association, 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 Lea.
He said reduced Chinese imports have softened copper prices. 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.
