Copper Prices Soar as Global Demand Surges

Copper prices in India have surged to around Rs 1,400 per kg in August, driven by a global supply shortage and rising demand from infrastructure and clean energy projects.

The trend reflects a fundamental mismatch between copper consumption and new supply, which takes years to develop. According to S&P Global estimates, global copper demand could rise from 28 million tonnes in 2025 to 42 million tonnes by 2040, a jump of nearly 50%. This growth is expected to come largely from electrification, renewable energy, electric vehicles, and AI data centres.

India's growing appetite for copper is also being reflected in the sharp rise in prices. The country does not produce enough refined copper to meet its own needs, leaving Indian buyers exposed to global shortages, shipping disruptions, and price swings. Demand from newer, greener applications such as solar & wind power, electric vehicles, battery storage, and electrolysers increased 32% year-on-year in FY25.

Buyers are willing to pay a premium for copper today because the metal is essential to keeping their production running. A delay in securing supplies could lead to disrupted production, push back deliveries or even cost the company its loyal customer. The premium paid over the global benchmark is an important signal that shows buyers are competing for limited supplies in a particular market.