After gold and silver, now it's copper. Copper is also delivering eye-catching returns in the international market. According to media sources, for the first time in the international market, copper prices have crossed $12,000 per ton, which is a new record. Experts believe that due to recent various mining-related problems, production and supply of copper, an extremely important metal in the industrial sector, have been disrupted, leading to price increases.
On Tuesday, copper prices rose 2 per cent on the London Metal Exchange to reach $12,159.50. On that exchange, prices have increased 35 per cent so far this year. For the first time since 2009, copper is on track for such a large annual return. On Tuesday, copper prices on MCX saw a 1.77 per cent increase.
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Why are copper prices rising?
According to a Mint report, prices have risen this year, keeping in mind the possibility of America imposing tariffs on metal imports. According to Bloomberg's report, copper stocks in American warehouses are now gradually increasing.
Uncertainty about supply has existed for a long time. However, in the past few months, it has gained so much importance that it has transformed into a market-driving force. Multiple incidents have contributed to supply uncertainty. For example, a terrible accident at one of Indonesia's largest copper mines. Floods in the Democratic Republic of Congo mines, terrible accidents in Chile's mines, etc. These have impacted copper supply worldwide. Copper is needed for electricity transmission and manufacturing electronic equipment. Now investments in green energy and AI are increasing, which is also increasing electricity demand. Based on this, demand and prices for copper are rising.
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According to Citigroup, in a bull run case, copper will reach $15,000 per ton. However, some experts believe that the current price increase is largely based on future considerations. Goldman Sachs experts think prices are rising based on concerns that there could be supply constraints in the future. The current price increase is not happening based on the demand-supply balance right now. Morgan Stanley experts believe that demand for copper will increase further next year, and supply pressure will increase accordingly.
Hindustan Copper:
In this environment, the stock price of Hindustan Copper, listed on India's stock market, has continuously increased. By 11 AM on Wednesday, prices had risen more than 5 per cent. In the past week, it has increased by 15.92 per cent. Over 6 months, this stock has given more than 67 per cent returns.
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