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Metal Recycling News October 17, 2017 02:30:22 PM

KPMG Forecasts Vast Growth Opportunities to Non-Ferrous Metals Industry

Anil Mathews
ScrapMonster Author
The global demand for non-ferrous metals has grown at a steady pace with a CAGR of 2.8% during 2013 to 2016.

KPMG Forecasts Vast Growth Opportunities to Non-Ferrous Metals Industry

NEW DELHI (Scrap Monster): A recent report published by KPMG states that India’s Non-Ferrous Metals Industry has immense opportunities for development in the near future. The report titled ‘Non-ferrous metals industry: Building the future’ notes that strong resilience in the Indian economy has helped the non-ferrous metals industry in the country to outpace the global trend. The industry is expected to grow at a healthier pace in future too, the report states.

The global demand for non-ferrous metals has grown at a steady pace with a CAGR of 2.8% during 2013 to 2016. During the same period, the global GDP recorded a growth of 3.4%. The global non-ferrous metals consumption increased sharply from 103.7 million tonnes in 2015 to 107.3 million tonnes in 2016. China accounted for nearly 50% of the global consumption of non-ferrous metals, thus making it the largest consumer of these metals.

According to the report, the projected strong GDP growth is expected to provide big boost to growth of non-ferrous metals industry in India. The government’s ‘Make In India’ initiative aims to increase the manufacturing share of GDP from 17% to 25% by 2025. The government has already identified 25 major sectors to lead the growth. Many of these sectors are major consumers of non-ferrous scrap and can thus result in tremendous growth of the industry. By 2022, the non-ferrous metals demand is expected to grow by around 8%. Further strengthening of the industry requires strong government support, KPMG report says.

The report analyzes the various reforms undertaken by the government, which in turn is expected to strengthen the country’s economy in the long run. It includes Make In India, Smart Cities, Skill India, Digital India, Housing for All, 24x7 Power for All, Startup India, Goods and Service Tax etc., The demand for non-ferrous metals in India is likely to be influenced by key sectors such as automotive, electricals, consumer durables, packaging, renewable energy, building and construction, galvanized steel, etc.

Over the past five years, demand for Aluminum has posted a CAGR of 5.4%. At the same time, the demand for primary copper has grown at a CAGR of 14%. Also, Lead and Zinc has grown at a CAGR of 7% and 3% respectively over the same period.

Apart from primary metals, the country has reported strong growth from the recycling industry. However, the report highlights the need to develop a stronger scrap recycling ecosystem through proper legislations, which in turn will promote organized scrap collection in the country and reduce the imports of non-ferrous scrap into the country.

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