Hindustan Copper, Vedanta shares jump up to 5% on soaring copper prices globally

June 26, 2025 | Mumbai

Shares of Indian metal majors Hindustan Copper Ltd and Vedanta Ltd rallied up to 5% on Wednesday’s trading session, riding high on the back of surging global copper prices. The rally is driven by renewed demand from China, tightening supply, and expectations of robust industrial activity globally—especially with clean energy transitions intensifying demand for copper-intensive technologies.

Copper Prices Near Record Highs

Benchmark copper futures on the London Metal Exchange (LME) surged to $11,130 per metric tonne, nearing the all-time highs seen in early 2024. On the domestic Multi Commodity Exchange (MCX), copper futures rose to ₹942 per kg, reflecting a nearly 3.2% rise in a single day.

Commodity analysts attribute the spike to strong restocking activity in China, disruptions in major South American copper mines, and an overall bullish sentiment amid increased consumption from the electric vehicle (EV) and renewable energy sectors.

Stock Movement and Trading Volume

Hindustan Copper Ltd saw its stock climb as much as 5.1% to touch an intraday high of ₹313.65 on the BSE, before closing 4.7% higher at ₹311.45. Vedanta Ltd also gained 4.3%, closing at ₹444.30. Trading volumes in both counters were significantly higher than their 20-day averages, signaling strong investor participation.

"Markets are reacting to the sharp uptick in copper prices globally. As both Hindustan Copper and Vedanta are major players in the copper value chain, they're seen as prime beneficiaries of this rally," said Amit Shah, Senior Metals Analyst at Motilal Oswal Financial Services.

What’s Driving the Copper Rally?

The copper market is witnessing a demand-supply mismatch, which experts believe may persist in the medium term.

1. China’s Industrial Recovery: Recent data points to a rebound in Chinese manufacturing activity, with the official PMI rebounding to 50.4 in May, the first expansion in six months.

2. Supply Constraints: Disruptions at key mining operations in Chile and Peru—responsible for nearly 40% of global copper output—have tightened global supply.

3. Energy Transition Boom: The shift toward electrification, including grid expansions and EV adoption, is increasing copper's strategic importance.

“Copper is the new oil,” stated Prakash Gaba, an independent commodity strategist. “Given its utility across clean tech and infrastructure, we’re likely entering a multi-year copper bull cycle. Indian producers like Hindustan Copper and diversified conglomerates like Vedanta are in a sweet spot.”

Government Policies and Domestic Production Outlook

The Indian government’s renewed focus on mineral self-reliance under the “Make in India” and “Critical Minerals Mission” schemes is expected to boost domestic copper production. Hindustan Copper, the only vertically integrated copper producer in India, recently announced a ₹600 crore expansion plan to increase its mining capacity.

Vedanta’s copper operations, on the other hand, are eyeing a revival of the Tuticorin smelter, which was shut in 2018. Although regulatory approvals are still pending, any progress on this front could significantly improve Vedanta’s copper output and profit margins.

Market Context: A Wider Rally in Base Metals

The copper rally comes at a time when other base metals like aluminum, nickel, and zinc are also experiencing price upticks. Analysts see this as part of a broader commodity cycle fueled by macroeconomic optimism and central banks maintaining accommodative stances.

The BSE Metal Index rose 2.3% in today’s session, outperforming the broader Nifty50, which was up only 0.4%. Other gainers included Hindalco, JSW Steel, and NMDC.

Investor Outlook and Valuation Perspectives

Market experts believe that while valuations of metal stocks may appear stretched, the strong fundamentals and global demand outlook still offer attractive opportunities.

“Metal stocks tend to be cyclical, but this cycle has strong secular drivers—energy transition, infrastructure, and digital expansion,” said Neha Bhatia, Vice President, Kotak Institutional Equities. “Copper, in particular, is a long-term story. Investors should look for staggered entries on dips.”

Brokerages remain bullish on both stocks:

• Hindustan Copper: ICICI Direct maintains a ‘Buy’ rating with a target price of ₹350, citing volume growth and stable margins.

• Vedanta: HDFC Securities sees upside potential with a target of ₹495, contingent upon regulatory clarity on its copper assets.

The surge in copper prices has brought metal stocks, particularly Hindustan Copper and Vedanta, into sharp focus. With supply remaining constrained and demand showing no signs of easing, copper appears set for a sustained bullish trend. For investors with a medium to long-term horizon, the current uptrend offers a strategic opportunity to ride the copper wave.