ICRA said on Dec 12 that India's copper demands will increase by 11 percent this fiscal, due to the government's efforts to develop infrastructure and move towards green energy. The rating agency also said it expects a stable outlook for the country and the domestic sector.
ICRA expects copper prices to remain at current levels of 8,200-8,300/tonne soon. he said in a statement.
He also said that the allocation of Rs 1,00,000 crore for capital expenditure in the previous government budget, along with the ambitious targets set under the National Infrastructure Pipeline (NIP), will boost copper consumption in the medium term.
Also, in the real estate sector, a significant 30% increase in India's six office markets and 10% growth in the commercial space is expected in FY24, which may favor the copper wire. Application
Significant emphasis by the government on the smart city program, the defense sector, and the expected higher penetration of electric vehicles and their associated infrastructure bode well for the domestic copper demand outlook, Jayanta Roy, Senior Vice President and Group Head of Corporate Sector Ratings, ICRA, said.
"In addition, the government'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 machinery, in the coming decade, translating into a healthy domestic copper demand," Roy said.
