Copper, a vital metal for electronics and the clean energy transition, has joined precious metals in a record-breaking rally in 2025, with London Metal Exchange (LME) prices rising 41% to nearly $12,300 per ton. The surge has been fueled by concerns over persistent supply shortages, positioning copper for its largest annual gain since 2009.
The rally in global copper prices has boosted sentiment toward Hindustan Copper, India’s major copper producer, which holds nearly 40% of the country’s copper ore reserves. Rising prices are expected to improve the company’s margins and revenue outlook.
Hindustan Copper Stock Performance
Reflecting the strong global trend, Hindustan Copper’s shares climbed 9% on December 26 to close at ₹475.60, marking a four-day consecutive gain. The stock has jumped 110% from its September low of ₹226.70, and has outperformed broader market indices, emerging as the top performer among Nifty Metal stocks. In December alone, the stock surged 45.4%.
Expansion and Strategic Moves
Hindustan Copper has renewed its mining lease for the Rakha Copper Mine in Jamshedpur for 20 years, enabling expansion and reopening of operations. The company also signed a memorandum of understanding (MoU) with Oil India to explore and develop critical minerals under the National Critical Minerals Mission. Plans are underway to increase mining capacity from the current 4 million tons per annum to 9.6 million tons in phase I, through expansion of existing mines, reopening of closed mines, and new projects.
Global Copper Market Outlook
Copper prices have also surged on the Shanghai Futures Exchange and COMEX, with the Shanghai contract touching 98,590 yuan per ton and COMEX prices rising 3% to $5.743 per pound. Market dynamics such as supply disruptions at major African mines, potential US tariffs, and a weaker US dollar have further supported the rally.
Global demand for copper remains strong, driven by sectors like electrical and electronic products, construction, industrial machinery, transportation, and consumer goods. The growth of electric vehicles, charging infrastructure, and green energy initiatives in the US and EU are expected to further increase copper consumption.
India holds only a small fraction of global copper reserves, about 0.2%, with mining production contributing 0.12% of global output and refined copper production around 2% worldwide.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research or consult a financial advisor before making investment decisions.
