China’s Sudden Copper Shock Creates Market Buzz, Vedanta Shares Jump As Global Supply Fears Rise

Mumbai: China’s sudden decision to stop 2 million metric tons of copper smelting capacity has shocked the global metal market. This news immediately pushed Vedanta’s share upward, as investors expect copper prices to rise sharply. With supply shrinking, Indian companies like Hindustan Copper and Vedanta have come into strong focus.

On the morning of 26 November, Vedanta’s share opened at Rs 507, slightly higher than the previous close of Rs 504. Soon after, the stock crossed Rs 512.

Experts say the sudden rise is linked to major news from China, where a big disruption has hit the global copper market.

China Stops 2 Million Metric Tons of Copper Smelting Capacity

The global copper market received a major shock today after China stopped 2 million metric tons of copper smelting capacity with immediate effect.

This is not just a normal news headline—it's a trend-changing moment for the entire base metal sector.

Because of this move, Indian copper companies like Hindustan Copper and Vedanta immediately came into focus.

China has announced strict action against new smelting projects that violated smelting capacity rules. Many such projects were fully stopped, and large units were suspended.

This is significant because China is the largest consumer and processor of copper in the world.

Why Did China Take This Step?

China is trying to control several problems at the same time:

– Tougher environmental rules

– Rising electricity costs

– The risk of overcapacity

– Falling profit margins

Because of these pressures, China suddenly reduced a huge part of its smelting operations.

Global Impact: Copper Supply Will Tighten

- The reduction in supply will make the global copper market tight.

- When supply falls → prices rise.

- When prices rise → mining companies earn more.

- Countries with strong copper production bases will gain the most, and India has now become a major player in this list.

Why Hindustan Copper May Benefit the Most

Hindustan Copper is India’s only vertically integrated copper company.

If copper prices rise, its margins improve immediately.

India’s copper demand is growing fast because of EVs, renewable energy, and industrial expansion, so China’s supply cut could directly benefit India.

Why Vedanta Is Also in Focus

Vedanta’s Tuticorin copper plant may be shut, but the company has strong exposure to global commodities.

A jump in copper prices can increase its consolidated profitability.

Its businesses in zinc, aluminium, and silver may also benefit if a metal super-cycle begins.

With ongoing debt restructuring, strong metal prices can give Vedanta much-needed breathing room.

China’s Massive Metal Consumption

China’s 2025 non-ferrous metals consumption is expected to reach 83 million metric tons.

This huge number shows that if China reduces production, metal companies around the world will see sharp gains.