Copper, a critical metal for electronics, has joined precious metals in a record-breaking run in 2025, with prices advancing 41% so far to nearly $12,300 per ton on the LME. The rally has been driven by concerns that the supply shortage could persist into next year, positioning the metal for its biggest annual surge since 2009.

The sharp rally in the industrial metal has also lifted sentiment toward domestic mining major Hindustan Copper, as rising prices could potentially expand the company’s margins and revenue outlook, given that it holds around two-fifths of India’s copper ore reserves and resources.

Hindustan Copper share price climbs 110% from September lows

Tracking the solid gains in global copper prices, Hindustan Copper share price surged another 9% in Friday’s session on December 26 to reach ₹475.60, a level not seen since 2010. Today’s rally also marked the fourth straight session of gains, taking the cumulative advance to 23% and contributing to a 45.40% surge in December so far.

From its September lows of ₹226.70 per share, the stock has staged a strong comeback, soaring 110% since then. It has significantly outpaced the broader benchmark indices and emerged as the top performer among Nifty Metal stocks.

Apart from rising copper prices, other catalysts include better-than-expected performance in the September quarter, expansion plans involving capacity growth, and strategic resource development, which have also aided investor sentiment, making the stock one of the top performers this year, a period marked by heightened market volatility.

The company renewed its mining lease for the Rakha Copper Mine in Jamshedpur for another 20 years, paving the way for reopening and expansion, while it also signed a memorandum of understanding (MoU) with Oil India to jointly explore and develop critical minerals, aligning with the government’s National Critical Minerals Mission.

The company is aiming to increase its mining capacity from the current level of around 4.0 million tons per annum to 9.6 million tons per annum in phase I (under implementation) through expansion of existing mines, reopening of closed mines, and opening of new mines.

LME copper prices jump over 40% in 2025

The most active copper contract on the Shanghai Futures Exchange touched a record high of 98,590 yuan a ton earlier in the session, while COMEX contracts rose 3% to hit $5.743 a pound.

The London Metal Exchange will reopen on Monday after the Christmas break. On Wednesday, LME copper prices scaled a peak of $12,248 per ton, nearing the $12,300 mark. For the year so far, prices have surged 41%.

The metal, which is crucial for the global energy transition, has remained in the spotlight throughout the year as countries across the world push aggressively toward clean-energy adoption, coupled with the ongoing artificial intelligence boom.

At the same time, a series of accidents and disruptions at some of the world’s largest copper mines in Africa have strained supplies, sending prices sharply higher. Further supporting the rally are concerns that the US could impose potential tariffs on the metal, leading to a sharp rise in imports into the country and threatening to leave the rest of the world undersupplied.

Prices have also received an additional lift in recent sessions from a slump in the US dollar, making the metal less expensive for holders of other currencies.

Analysts expect the rally in copper prices to continue next year as well. Citigroup Inc. expects LME copper to hit $13,000 per ton amid the scramble to move metal to US shores. Goldman Sachs Group Inc. last week flagged copper as its favoured metal for the year ahead.

Global copper demand seen staying strong

Global demand for copper continues to grow, with the latest estimates suggesting that world refined copper usage has more than tripled over the last 50 years, driven by expanding sectors such as electrical and electronic products, building construction, industrial machinery and equipment, transportation equipment, and consumer and general products.

The global rollout of electric vehicles along with the associated charging infrastructure, decarbonisation policy push by the US and the EU, and increasing emphasis on green energy to mitigate climate change are all contributing to the rise in copper demand.

Compared with global markets, India has very limited copper ore reserves, contributing about 0.2% of global copper reserves. Mining production accounts for just 0.12% of global output, while refined copper production stands at around 2% of worldwide production.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.