Copper prices have climbed by 41% this year, fuelled by worries about shortages and also supported by a weak dollar and strong gains in other financial markets. Benchmark three-month copper on the London Metal Exchange rocketed by 6.6% to a record $12,960 a ton, but pared gains to $12,222, up 0.5% in the morning. Hindustan Copper, India’s only vertically integrated copper producer, has been one of the top beneficiaries of the recent spike in copper prices.
Experts suggest that the copper market is in a strong position thanks to rising industrial applications and global electrification trends. He noted that while copper prices tend to be volatile, the broader trend remains positive and bodes well for companies like Hindustan Copper.
Higher realisations from dollar-linked contracts and a depreciating rupee further boost the company’s margin outlook. Dipan Mehta of Elixir Equities told The Economic Times earlier that metal companies, including Hindustan Copper, naturally benefit from these currency movements, as many of their sales are tied to dollar-denominated prices. This has helped improve the overall earnings environment for the firm, leading to higher investor confidence.
With copper demand expected to remain strong due to global electrification, renewable energy deployment, and infrastructure buildout, Hindustan Copper remains well-positioned to benefit from structural tailwinds, say experts.
The supply side has seen a string of setbacks in 2025. Indonesia’s Grasberg underground mine faced halts after a deadly incident, and Chile’s El Teniente suffered tunnel collapses and downtime. Hareesh V of Geojit Financial Services said, “2025 saw an exceptional string of mine setbacks,” reinforcing supply stress and the bullish sentiment.
While the medium-term outlook for copper remains strong, analysts advise caution in the near term. Sachin Gupta, VP-Research at Choice Broking told ET that the Relative Strength Index (RSI) is currently at elevated levels and is showing signs of negative divergence, which could indicate that the stock is overbought and may see some profit booking.He suggested a “buy on dips” approach for investors looking to enter afresh. The stock has a strong support level near Rs 450, while resistance is seen around Rs 500. Any pullback towards the support zone could offer a better entry point, according to Gupta
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. They do not represent the views of the Economic Times)