Athira Sethu
Kochi, 23 Sep 2026
Prices of copper have gone up in global markets once again, which has been a boost for copper-based firms in India. Shares of Hindustan Copper, Hindalco, and Vedanta have gained by up to 3% in today’s trading session as global copper prices went up for the sixth consecutive session.
The recent increase in copper prices is largely due to a mix of demand and low supply. Prices of copper futures in the US have crossed $6.7 per pound and marked their sixth consecutive gain. Global production of copper has also declined for the first time since 2017.
The prices of copper on the London Metal Exchange (LME) have hit a record high of $14,870 per tonne. However, the prices have corrected by 4% on that particular day and regained their loss in the next six sessions. The price of copper was around $14,755 per tonne on Tuesday.
Supply Issues
The supply problem that is causing the increase in the price of copper is the reduced production. The mining issues affecting the Grasberg mine of Indonesia and Kamoa-Kakula mine in Congo contributed to a decrease in production of copper by 600,000 tones at the beginning of 2026.
There has been a decrease in production of copper in the world exceeding 1% in the first half of 2026 when compared to the same period last year. There has also been a reduction in the production of the metal in Chile which is the largest producer of copper in the world. It produces 24.5% of the world’s mined copper.
High Demand
In addition, there is high demand of the metal in the world. In China, the largest consumer of copper, the demand of the metal is increasing. The copper price in China’s physical market has traded at a premium price.
US Imports Surge
There has been a surge in copper exports to the US due to the possibility of tariffs on processed copper. The imports of copper cathodes in July were at their all-time high of 223,000 tonnes as compared to 37,000-80,000 tonnes prior to 2024.
Impact on Indian Stocks
Copper stocks like Hindustan Copper and Hindalco have seen an upside in their performance due to the rise in copper prices. But there could be challenges for other firms such as Polycab India, RR Kabel, KEI Industries, and Finolex Cables, which depend on copper as raw material.
Looking ahead, copper prices are likely to see volatility. Strong demand from China, increasing power requirement for AI data centers, and low supplies from mines will continue to drive prices.
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