Shares of Hindustan Copper Ltd gained 2.26% on Thursday, September 25, trading at ₹315.68 apiece after copper prices spiked globally. The rally in the stock came in tandem with the surge in copper futures on the Multi Commodity Exchange (MCX), which jumped nearly 2% to ₹926.45 per kg on Wednesday.
The momentum followed an announcement by global copper giant Freeport-McMoRan Inc., the world’s largest listed copper producer, which declared force majeure on contracted supplies from its Grasberg mine in Indonesia. The company reported a 4% cut in its Q3 copper sales forecast versus July estimates, alongside a 6% drop in gold sales.
The revision came after a mud rush incident at Grasberg, one of the world’s largest copper and gold deposits, which killed two workers, left five missing, and forced suspension of mining operations since September 8. The supply disruption has triggered strong buying interest in copper contracts, with traders factoring in a potential short-term squeeze in global availability.
With global inventories already tight across exchanges like the London Metal Exchange (LME) and COMEX, Indian copper stocks, including Hindustan Copper, have gained positive traction from the commodity rally.
