Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

India's refined copper consumption to grow by 11% in FY2024, despite global headwinds: ICRA

Posted On: 2023-12-11 11:58:34 (Time Zone: IST)


Government's extensive infrastructure development plans bode well for the domestic copper demand

In a recent note on the Indian primary copper industry, ICRA has estimated the domestic refined copper demand growth to remain healthy at ~11% in FY2024 and FY2025, outpacing the rate of global growth in copper demand, given the Government's thrust on infrastructure development and a gradual transition to renewable energy. ICRA projects copper prices to remain range-bound at current levels of ~8200-8300/tonne in the near term. ICRA foresees a stable outlook for the domestic copper industry.

In the domestic market, around ~40% of the copper is consumed in the infrastructure and construction sector and ~11-13% each in the automobile and consumer durable sectors. ICRA notes that a healthy allocation of ~Rs 10 trillion for capital spending in the last Union Budget, coupled with ambitious targets set under the National Infrastructure Pipeline (NIP) is expected to drive copper consumption in the medium term. In addition, in the real estate sector, a significant incremental supply growth of ~30% in top six Indian office space markets and ~10% growth in retail mall space (top six cities) is expected in FY2024, which is likely to spur copper wire demand.

Elaborating further on the domestic copper demand outlook, Mr. Jayanta Roy, Senior Vice-President and Group Head, Corporate Sector Ratings, ICRA, said: "Significant emphasis by Government of India (GoI) towards the smart city programme, the Defence sector as well as the expected higher penetration of electric vehicles and its associated infrastructure bode well for the domestic copper demand outlook. In addition, the GoI's ambitious target to achieve 500 GW of renewable energy capacity by 2032 would entail significant capacity addition in the transmission network including for substations and electrical machineries in the coming decade, translating into a healthy domestic copper demand".

The automotive and transport sectors also play a pivotal role in the overall consumption of copper in India. After a stellar performance in FY2023, automotive demand is expected to grow at a moderate pace of ~6-9% in the passenger vehicles segment and ~2-4% in the commercial vehicles segment in FY2024. Furthermore, the increased focus on replacement of old vehicles and on green mobility augurs well for the copper demand. Additionally, investment in the metro rail network and railway electrification would aid domestic copper consumption in coming years.

While domestic demand remains healthy, lower production of refined copper in India has seen a deficit in the domestic market, which is being met through increasing imports of refined copper or through direct imports of finished copper products. The imports of refined copper had increased by ~30% in FY2023 and by ~180% in H1 FY2024, and the trend is likely to continue in the near term as well. ICRA, however, notes that a new copper smelter of 0.5 million MT (mmt) by the Adani group is expected to start from FY2025 onwards which, once stabilised, is likely to reduce the deficit situation to an extent.

On the global front, the copper consumption is likely to remain muted in the current calendar year. "Contrary to healthy domestic demand, moderate growth in China and significant weakness in Europe and North America, amid heightened fears of an economic slowdown, is estimated to result in a flattish global copper demand of ~2% in CY2023. In addition, the global copper supply shows signs of improvement, primarily in China, which is likely to result in a surplus copper balance in the current calendar year. Consequently, copper prices remained under pressure and corrected by almost ~9% in the current fiscal till date. The prices are expected to remain range-bound at current levels of ~8200-8300/tonne in the near term," Mr. Roy added.


Click here to send ur comments or to feedback@equitybulls.com

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Godrej Interio's 'HomeScapes' Study reveals Indians want ‘Me-Time’ at home

GDP growth to moderate to 6.0% in Q3 FY2024, led by agriculture and industry: ICRA

Indian stock exchanges rank first in the world in terms of the number of IPOs in 2023

CRISIL Ratings: After soaring this fiscal, airlines to land >20% operating profit growth next fiscal

Rising frauds propel demand for AI/ML strategies: Experian Study

Cement makers to add 150-160 MTPA capacity by fiscal 2028 - CRISIL

Investor exuberance propelling broking industry performance, MTF achieves a new high: ICRA

CRISIL Ratings: Securitisation volume up ~20% in first nine months of this fiscal

India is fastest growing large economy globally in CY2023-CY 2024 - Pantomath Report

CRISIL Ratings: Market share of gold-loan NBFCs steady despite bank competition

CRISIL Ratings: Vehicle loan AUM to vroom past Rs 8 lakh crore next fiscal

45% of Newbie traders claim that 'not knowing enough' is the primary reason for losses incurred in Futures & Options trading - Sharekhan's survey reveals

CRISIL Ratings: Agri pump makers to see 7-9% revenue growth next fiscal

Indian mutual fund industry likely to sustain its strong inflows in 2024: ICRA Analytics

CRISIL Ratings: Operating profit of offshore rig operators to swell 30% next fiscal

CRISIL Ratings: Organised F&G retailer revenue to grow in mid-teens next fiscal

CRISIL Ratings: Shippers see a further revenue dip of 5-7% next fiscal as charter rates course correct

82% of professionals are concerned about job redundancy due to emerging technologies: Hero Vired Report

UPI transactions witnesses 118% rise at retail stores in 2023: PayNearby Report

Happy Forgings Limited - IPO - A trusted supplier for several Indian and Global OEMs - Reliance Securities

CRISIL Ratings: Penetration of electric buses set to double next fiscal

CRISIL Market Intelligence and Analytics - Curb on cane juice for ethanol - Sugar output lift

Stable Repo Rates to Keep the Momentum Going for the Housing Market - Anuj Puri, Chairman - ANAROCK Group

Payback period for investment in sustainable warehouses come down to three years in India: A JLL - IndoSpace report

CRISIL Ratings - Profit margins of cotton yarn spinners to plunge 250-350 bps to decadal lows of 7-8% this fiscal

Government, PSUs, and Defence sector experience 14% upsurge in hiring: foundit Insights Tracker

CRISIL Ratings: Spirits high for organised liquor makers, revenues seen up 13%

Corporate bond market to more than double by fiscal 2030 - CRISIL

Gas Utilities : Gas consumption at record highs, growth now to trickle - Kotak Institutional Equities

Emkay and Geojit increase target prices of LIC, expect over 20% upside

CRISIL Ratings: Mall area to rise by 35% over the medium term on retail surge

Crop & Chemical Dashboard: Bottom is near, recovery unclear - Kotak Institutional Equities

Loan sell-downs of personal loan pools may see a temporary pause following the RBI's decision to increase risk weights: ICRA

India Surges Ahead in 5G Deployment, Paving the Way for a High-Tech Future!

CRISIL Ratings: Construction equipment revenue to grow 14-15% this fiscal

India to contribute 22% to the Global ER&D sourcing market by FY30: BCG-nasscom Report

CRISIL Ratings: In a decadal first, revenue of agrochemicals makers to slip ~3% on tepid demand this fiscal

CRISIL Ratings: Flexible packaging industry stares at decadal low profitability as oversupply stings

CRISIL Ratings: Domestic demand, softer cotton prices to sustain RMG growth

CRISIL Ratings: Higher workplace occupancy to light up cigarette volume 7-9%

CRISIL Ratings: Apparel retailers to grow 7-8% this fiscal via expansion, festival spur

CRISIL Ratings: For tea companies, ~8% revenue degrowth brewing this fiscal

CRISIL Ratings: Revenue of paper makers to crumple 8-10% this fiscal

ICRA expects banking sector to stay resilient, outlook remains Positive

CRISIL MI&A: Red-hot domestic demand to stave off steel price melt this fiscal

CRISIL Ratings: Replacement demand to drive tyre volume up 6-8% this fiscal

CRISIL Ratings: Home textiles makers to weave revenue, profitability rebound this fiscal

Capital outlay on roads, renewables seen rising ~35% in this and next fiscals to Rs ~13 lakh cr, backed by strong execution pace

Softening demand to moderate Indian IT services industry growth to 3-5% in FY2024: ICRA

CRISIL Ratings: Telcos may dial up Ebitda 15-17% to Rs 1.2 lakh crore this fiscal


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020