Asia Pacific Copper Market Outlook to 2028

Asia Pacific Copper Market Overview

The Asia Pacific Copper Market was valued to USD 124 billion by the increasing demand for electrical products, automotive manufacturing, and infrastructure development. Copper is widely used in electrical wiring due to its excellent conductivity, making it essential for the rapidly growing EV market and renewable energy sector.

Major players in the market include companies like Jiangxi Copper Corporation, BHP Group, Rio Tinto, Sumitomo Metal Mining, and Mitsubishi Materials. These companies dominate the copper production and processing industry, holding significant market shares due to their extensive mining and refining capabilities.

BHP Group plans to expand its Olympic Dam copper smelter and refinery, aiming to increase production from 322,000 tons in FY24 to 500,000 tons by the early 2030s, with potential growth to 650,000 tons by the mid-2030s. This initiative supports the rising demand for copper in renewable energy and EV sectors.

China dominates the market in the Asia Pacific region, by its vast infrastructure projects, high copper consumption in the construction and electrical industries, and its leadership in EV production. China's Belt and Road Initiative, which includes numerous construction projects, further enhances its demand for copper, solidifying its position as the market leader.

Asia Pacific Copper Market Segmentation

The market is segmented into various factors like product, end-user, and region.

By Product: The market is segmented by product into refined copper, copper alloys, and copper scrap. Refined copper held the dominant market share due to the extensive use of refined copper in electrical wiring, construction, and automotive industries. With the growing demand for EVs and renewable energy, refined copper continues to be the most demanded product in the market.

By End-user: The market is segmented by end-user into electrical and electronics, construction, and transportation. The electrical and electronics industry dominated the market with the need for efficient electrical conductivity in wiring and power generation. The growing EV market, where copper is essential for batteries and motors, also contributes to this segment's dominance.

By Region: The market is segmented by region into China, South Korea, Japan, India, Australia, and the Rest of APAC. China held a dominant market share by its massive construction projects and leadership in EV manufacturing. China's Belt and Road Initiative has further increased demand for copper in infrastructure development.

Asia Pacific Copper Market Competitive Landscape

Company

Establishment Year

Headquarters

Jiangxi Copper Corporation

1979

Nanchang, China

BHP Group

1885

Melbourne, Australia

Rio Tinto

1873

London, UK

Sumitomo Metal Mining

1590

Tokyo, Japan

Mitsubishi Materials

1871

Tokyo, Japan

Rio Tinto: In 2023, Rio Tinto announced progress in its long-term strategy, with copper production expected to grow by 4%. The Oyu Tolgoi mine in Mongolia will produce 500 kt of copper annually from 2028-2036, making it one of the largest copper mines globally. Rio Tintos capital investments will reach $10 billion annually from 2024-2026, focusing on copper and lithium projects. The company aims to halve its emissions by 2030, with a $5-6 billion decarbonization plan.

Mitsubishi Materials: Mitsubishi Materials will begin commercially recycling rare metals like cobalt and lithium from used lithium-ion EV batteries in fiscal 2025. They aim to increase processing capacity to 6,000 tonnes per year by around fiscal 2030, using a technology to efficiently extract rare metals from black mass powder.

Asia Pacific Copper Market Analysis

Market Growth Drivers

Electric Vehicle (EV) Expansion: The electric vehicle (EV) market is a significant growth driver for copper demand, requiring60 kg of copper per vehiclecompared to29 kgfor hybrids and24 kgfor combustion engines. By 2050, electrifying the global vehicle fleet will necessitate55% more new copper mines, with total copper demand needing to exceed115% of all copper mined historicallyby 2018.

Renewable Energy Initiatives: The growth in renewable energy projects, particularly solar and wind energy, continues to bolster copper demand. By 2024, the Asia Pacific region will generate 50 gigawatts of energy from new solar installations, all of which require copper for power transmission and storage. Governments are increasingly investing in grid expansion projects, with China's 2023 power grid expansion utilizing over 2 million metric tons of copper.

Infrastructure Development in Emerging Economies: Indonesia has finalized 190 National Strategic Projects (PSN) worth Rp 1515 trillion (US$95.8 billion) as of 2023, with 153 projects completed between 2016-2022 and 37 more in 2023.The government plans to invest over $400 billion in infrastructure from 2020-2024, focusing on transportation (60%), power plants, waste-to-energy facilities, and mass transit projects.

Market Challenges

Volatility in Copper Prices: Copper prices have fluctuated due to supply chain disruptions and geopolitical tensions. In 2023, copper prices creating uncertainty for manufacturers reliant on the metal. These price hikes have impacted the cost structures of industries, particularly construction and electrical manufacturers in Asia Pacific, who now face increased operational costs.

Copper Recycling Limitations: While recycling efforts are growing, the recycling rate for copper remains limited due to technological challenges. As of 2023, only 20% of copper is recycled in the Asia Pacific region, with a gap between supply and demand still existing. The lack of sophisticated recycling facilities in some regions hinders the ability to meet rising copper demand from secondary sources.

Government Initiatives

Chinas Belt and Road Initiative (BRI): China's Belt and Road Initiative (BRI) aims to invest over USD 1 trillion in infrastructure projects across 149 countries by 2023. This initiative is expected to increase global copper demand by 22% by 2027, requiring an additional 6.5 million tonnes of copper, impacting the construction and energy sectors.

Indias Smart Grid Mission: India's National Smart Grid Mission (NSGM), launched in 2015, is set to invest 116.01 crores in two smart grid projects. This initiative aims to enhance energy efficiency and reliability, boosting copper demand due to its essential role in smart grid technology. By 2028, copper consumption is expected to rise as smart grid infrastructure expands.

Asia Pacific Copper Market Future Outlook

Innovations include advancements in copper recycling technology, energy-efficient smelting processes, and sustainable mining practices aimed at reducing environmental impacts.

Future Market Trends

Growing Demand for Copper in EV Infrastructure: By 2028, the Asia Pacific region is expected to witness a dramatic increase in copper demand for electric vehicle infrastructure. Countries like China and Japan will need nearly 5 million charging stations by 2028, each requiring significant amounts of copper for wiring and electrical components. This will contribute to sustained copper consumption.

Increased Focus on Copper Recycling: Copper recycling is projected to grow by 2028, with recycling rates expected to increase by 30%. Technological advancements in recycling processes will help meet rising demand, and government regulations will further support these efforts. The Asia Pacific region will become a global leader in copper recycling, reducing dependency on new mining.
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