DJ India's Copper Consumption To More Than Double Next 4 Yrs-Exec ( )
MUMBAI, Mar 09, 2009 (Dow Jones Commodities News via Comtex) -- India's copper consumption is expected to more than double in the next four years to 1.1 million metric tons, boosted by increased government spending in developing the country's power sector, said a senior industry official.
The country is expected to have consumed 547,000 tons of copper in 2008.
"With India planning a major expansion of its power sector, per capita consumption of the metal is expected to rise sharply," S.K. Sharma, vice president of marketing at Hindalco Industries Ltd. (500440.BY), said at a metals conference over the weekend.
As with other metals, India's per capita consumption of copper is quite low, at 0.6 kilograms compared with China, which is around five times higher than India's, he said.
India is planning to add 145 gigawatts of electricity by 2017 compared with 141 gigawatts currently.
Major uses of copper in the power sector are for transformers, wires and cables.
"Around 138 million rural houses are still without electricity, so there is a lot of potential," Sharma said.
He said India has been cutting down on copper exports due to rising domestic demand.
"This year, around 70% of India's refined copper production will be sold in the domestic market," he said.
Last calendar year, about 60% of India's refined copper production was consumed locally.
In 2008, the country produced 708,000 tons of refined copper.
The construction sector is another area where demand for copper is on the rise, he added.
-By Swansy Afonso and Dilipp S Nag, Dow Jones Newswires; 91-22-2288-4212-18; swansy.afonso@dowjones.com
(END) Dow Jones Newswires
