India’s escalating copper demand has positioned Peru as a vital partner in securing its supply needs. As both nations edge closer to finalizing a landmark copper trade deal, their economic collaboration is set to reshape the global copper market.
India’s Expanding Copper Needs
Copper has become an indispensable resource for industries driving clean energy advancements, from wind turbines to electric vehicle batteries. This surge in demand has outpaced India’s domestic production, leading to a sharp increase in copper imports. By 2024, India’s copper concentrate imports reached ₹26,000 crore, up from ₹13,000 crore in 2019, underscoring its deepening dependence on international suppliers.
Peru’s Leadership in the Copper
As the world’s second-largest copper producer and exporter, Peru has solidified its dominance in the sector. In 2023, the country recorded an impressive 2.75 million fine metric tons (FMT) of copper production, with expectations to reach nearly 3 million metric tons in 2024. Leading companies like Minera Las Bambas S.A., Minera Antamina S.A., and Sociedad Minera Cerro Verde S.A.A. spearhead this output.
Peru’s copper exports predominantly flow to China, which accounted for over 75% of its 2023 shipments. Japan and South Korea are also key markets. Despite a slight decline in mining investments to $4.7 billion, Peru remains a top destination for global investors, with China, Canada, Mexico, and the U.S. playing major roles in its mining sector.
India and Peru’s Trade Relations
The upcoming trade agreement between India and Peru is poised to transform their economic relationship, providing India with a stable and reliable source of copper. Peru already plays a significant role in India’s copper supply chain. In 2022, India imported $2.98 billion worth of copper ore, with Peru featuring prominently among other suppliers like Indonesia, Chile, and Australia.
Peru’s Infrastructure Powering Future Trade
Peru’s infrastructure investments demonstrate its strategic approach to global trade. The Chancay mega port, set for completion in November, will significantly boost Peru’s logistical capabilities. Positioned 80 km north of Lima, this port will accommodate the largest vessels, connecting Peru with key international markets. Additionally, the Corío port project near Lima will enhance Peru’s status as a Latin American logistics powerhouse.
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