Mumbai: Shares of Hindustan Copper continued their sharp rally on Thursday, January 29, rising as much as 17.6 percent to hit a new 52-week high of Rs 745 on the NSE. Over the past six months, the stock has delivered a massive 188 percent return, making it one of the strongest performers in the metal space.
The stock’s rally comes at a time when copper prices are surging across domestic and global markets, supported by strong investor demand and tight supply.
Copper prices at lifetime highs
On the MCX, copper futures for February jumped 6.5 percent to around Rs 1,407 per kg in early trade. The metal also touched a lifetime high of Rs 1,432.35 per kg during the session.
In global markets, copper hit record levels as well. The most active contract on the Shanghai Futures Exchange rose over 6 percent to around 108,740 yuan per tonne, after touching an all-time high earlier in the day.
Traders say investors are moving money from gold and silver into copper, as they look for better returns in industrial metals.
Why copper is in strong demand?
Analysts say copper is gaining importance in the global commodities market. Bloomberg Intelligence now calls it the “king of commodities”, as it is expected to make up more than 35 percent of earnings (EBITDA) for major mining companies by 2026.
Goldman Sachs has highlighted three main reasons behind the recent surge in copper prices:
First, buyers have sharply increased withdrawals from London Metal Exchange (LME) warehouses, showing that supply outside the US is tight.
Second, demand linked to artificial intelligence (AI) is rising. Data centres used for AI need large amounts of copper for power and cooling systems.
Third, investors believe the US economy will be allowed to grow strongly, which supports demand for metals and other risk assets.
Tariff worries add to the rally
Goldman Sachs also said a possible US decision on import tariffs on refined copper around mid-year could push prices further. Fears of higher taxes have already led US buyers to stockpile copper, creating shortages in other markets.
However, the investment bank warned that current high prices may not last. It said copper prices above USD 13,000 per tonne are unlikely to be sustained over the long term.
What it means for Hindustan Copper?
Hindustan Copper is directly benefiting from the global copper rally. With prices at record highs and strong investor interest in the metal, the stock has seen heavy buying.
As long as copper prices remain firm, market experts believe the company’s share price could stay supported, though volatility cannot be ruled out.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to risks. Readers should consult certified financial advisors before making investment decisions.
