State-owned Hindustan Copper witnessed another round of selling pressure in Thursday’s session, with the stock falling 6% to the day’s low of ₹577.60 apiece, as the sell-off in the counter deepened amid a twin blow of falling copper prices and a strengthening US dollar.
Copper prices joined a broader rout across asset classes, including precious metals, with benchmark three-month copper on the LME dropping another 1% to $12,925 a ton amid concerns over rising supplies from China.
On Tuesday, copper had surged nearly 4.55% in its best one-day gain since November 2022, driven by a broad rebound in metals after a historic drop. However, rising inventories have tested demand for the red metal, which is widely used in construction and electrification.
Inventories in London Metal Exchange warehouses in Asia have also been rising, testing the rally of the red metal. A 12,750-tonne inflow into LME’s Asian warehouses in Taiwan and South Korea brought on-warrant copper stocks registered with the exchange to 155,725 tonnes, the highest level since March.
Copper inventories in SHFE warehouses have also been rising since December, totaling 133,004 tonnes on Friday, the highest level since April, Reuters reported, citing the exchange’s weekly stock report.
At the same time, Beijing’s Nonferrous Metals Industry Association has forecast that the country’s refined copper output is likely to rise by about 5% this year, following a 10% surge last year, according to media reports.
Further, the purchases from Chinese fabricators and manufacturers slowed for a second consecutive day on Wednesday, as businesses prepare for the Lunar New Year holidays.
In addition to rising copper supplies, the strengthening US dollar has weighed on greenback-denominated commodities by making them less affordable for investors using other currencies.
The dollar index strengthened above 97.5 on Thursday, scaling a near two-week high, as markets priced in a slower pace of potential Federal Reserve rate cuts.
Elsewhere, markets are also focusing on the US plan for strategic stockpiling of critical minerals to counter China’s dominance, with the latest step announced on Wednesday to marshal allies into a preferential trade bloc and propose coordinated price floors.
Hindustan Copper shares slide 24% from recent peak
The shares have retreated sharply from recent highs, falling 24% over seven trading sessions, as the relentless rally prompted investors to lock in some gains, while falling copper prices also hurt sentiment.
Between September and January, the stock gained 200%, which also helped it close 2025 with a 110% gain, the biggest annual gain since 2023.
(With inputs from Reuters)
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