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Recently, Indian copper prices have soared because Vedanta Resources indicated on Friday that it was forced to close down a copper smelter in South India, one of India's largest copper smelters. South India’s copper smelters account for about 35% of India’s major copper market, mainly to the Gulf and Asian countries. The plant has been shut down for more than 50 days. The factory's copper product has an annual production capacity of 400,000 tons.
The rise in the price of copper in India is related to the closure of production capacity of the South Indian copper smelter. On the other hand, India’s growing consumption also plays a major role.Titanium Brush CNC Turning Product Supplier
The infrastructure that India needs to solve brings copper consumption growth:
India is a populous country, but its infrastructure is extremely backward, and electricity shortages and traffic congestion are urgently needed to be solved. According to WBMS data, the current average consumption of refined copper in India is 450,000 tons per year, and the per capita copper consumption is only 0.35 kg/person, which is lower than the world average of 3.11 kg/person, and far lower than the copper consumption of 8.25 kg per capita in China. Level and low consumption levels are bound to have huge demand space. Market participants expect that by 2020, copper consumption in India will reach 1 million tons, with an average annual increase of about 100,000 tons.
According to the latest WBMS announced India's refined copper demand in Q18 of 316,600 tons, an increase of 14.1% year-on-year. Quarterly output was also the second highest since the fourth quarter of 2010, just behind the 135,000 tons of Q3 2016. It can be seen that demand for refined copper in India has performed strongly in the first quarter of this year.Titanium die casting custom cnc machining parts Supplier
In addition, India's demand for refined copper accounted for 2.25% of the total refined copper demand in the world in the first quarter of 2018, which was higher than 2.09% in the same period of last year. The proportion of consumption was at a high level in the past two years.
In terms of output, India produced 218,800 tons of refined copper in the first quarter, slightly lower than 221,200 tons in the same period of last year. Under the premise of increasing demand by 14.1%, the growth rate of production is even less one of the reasons why India’s copper price performance is dazzling.
Consulting firm ICRA Ltd said in a report last month that demand for copper in India grew at a rate of 7-8% per year. If no new plant is put into operation, India could become a net importer of copper by 2020.
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Indian Prime Minister Modi spoke at the opening ceremony of the Davos Forum in 2018 about "India climbing." Modi said that over the past few decades, too many controls have affected the potential of young people in India. Now that we have courageously changed our policies, the government has adopted many policies to change this situation. Now India is undergoing major changes. We have a total of 1.5 billion Indians. Titanium custom cnc machining Supplier There is a song that reflects their hopes. We want to introduce this dream to everyone. By 2025, India will become a 5 trillion economy.
In summary, in addition to China, the United States, and the “Belt and Road Initiative”, the growth in copper consumption driven by India’s economic potential is a factor that the market can not ignore.