Copper prices have been surging in global markets over the past few months. Alongside this, Hindustan Copper Limited's share price has risen correspondingly. In the last trading session, the company's share price increased by 9 per cent to reach ₹475. This stock has gained 23 per cent over four trading sessions last week. Hindustan Copper's share price has risen 45 per cent since December. Since September, this stock's price has increased by approximately 110 per cent. Hindustan Copper has become the top performer among stocks in the Nifty Metal Index.
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Why are copper prices rising?
The use of renewable energy is increasing worldwide. Copper is being extensively used, particularly in electric vehicles, solar and wind power projects, and electricity transmission systems. Along with this, the rapid expansion of artificial intelligence or AI technology has further increased copper demand.
At the same time, accidents and production disruptions at several major copper mines in Africa have created supply pressure. As a result, copper prices have risen rapidly in international markets. Additionally, concerns that the United States might impose potential tariffs on copper have led to increased copper imports in that country. This has raised concerns about copper shortages in other markets worldwide.
According to analysts, this upward trend in copper prices may continue next year as well. Citigroup's forecast suggests that copper prices could reach $13,000 per ton in the LME market. Goldman Sachs has identified copper as the most preferred metal for the coming year.
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Global copper demand is increasing
Worldwide copper demand is consistently rising. According to recent calculations, the use of refined copper globally has increased more than threefold over the past 50 years. The use of this metal has rapidly increased in electricity and electronic products, the construction industry, industrial machinery, transportation, and consumer goods sectors. However, compared to global markets, India's copper ore reserves are very limited.
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