Hindustan Copper shares jump 4% as copper prices surge to all-time high. What’s driving the red metal’s red hot rally?

Hindustan Copper shares surged over 4% on Tuesday as copper prices reached a new all-time high, driven by concerns over supply shortages and a weaker US dollar. The metal's price on the London Metal Exchange reached a record $14,533 per metric ton, up from its previous peak of $14,527.50 in January. Domestic Copper futures on the Multi Commodity Exchange of India (MCX) edged close to lifetime highs, climbing about 1%.

Investment funds, including Commodity Trade Advisor (CTA) funds, were the primary buyers fueled by automated trading programs, according to Alastair Munro, a senior base metals strategist at broker Marex. Traders and producers had been shipping significant amounts of copper to the US since President Trump announced import tariffs in February 2020, pushing Comex copper stocks to a record 766,795 short tons.

Trump imposed tariffs on copper products, but not on refined metal, and later announced a Commerce Secretary report before deciding on further tariffs on copper imports.

Hindustan Copper, India's only integrated copper producer with captive mines, witnessed a sharp rise in its stock amid the climbing copper prices. The metal's price soar has resulted in multibagger returns for Hindustan Copper over the past year, up more than 115%. Over longer periods, the stock soared 217% in three years and 352% in five years, earning a market capitalization of Rs 51,233 crore.