Hindustan Copper hits 20% upper circuit on January 29; stock skyrockets over 190% in 6 months. What is behind the stellar rally?

The stock of the company ended 20% higher, its upper circuit limit, at ₹760.05 on the NSE.

Over the past six months, the scrip has rallied over 194%, data show.

Shares of Hindustan Copper have been on a one-way upward trajectory, thanks to a consistent rally in copper prices.

On the MCX, copper futures for February were trading 6.49% higher at ₹1,407 per kg in the morning trade.

The metal price hit a lifetime high of ₹1,432.35 on the MCX today.

Copper also hit a record high in international markets, driven by strong investor demand for physical assets amid geopolitical tensions and a weaker dollar.

The most active copper contract on the Shanghai Futures Exchange jumped 6.35% to 108,740 yuan ($15,652.12) per metric tonne by 0330 GMT (9:00 AM), after touching an all-time high of 109,570 yuan earlier in the session, according to news reports.

According to traders, copper is rising as investors move over from the strong gains in gold and silver.

What Goldman Sachs and other analysts say

Copper’s rising dominance is reshaping the global mining sector’s earnings mix.

According to the Indonesian Mining Association, the metal—once dubbed “Dr. Copper”—has been transformed into what Bloomberg Intelligence now calls the king of commodities.

Copper is expected to account for more than 35% of diversified miners’ EBITDA by 2026, up from around 21% eight years ago, driven mainly by higher prices and portfolio simplification rather than increased production volumes.

Goldman Sachs Research identifies three key factors behind the recent surge in copper prices.

First, buyers sharply increased requests in December to withdraw metal from London Metal Exchange (LME) warehouses, underscoring tight supply conditions outside the US.

Second, expectations of strong demand linked to artificial intelligence have grown, as data centres—used to power and cool AI infrastructure—require significant amounts of copper.

A third factor has been the market narrative that US economic policymaking is aimed at allowing the economy to “run hot”, prompting rallies in copper and other risk assets at the start of the year.

While Goldman Sachs expects consumption of semi-finished copper products in the US to rise, analysts note this is unlikely to materially affect global demand growth, as the US accounts for just 7% of the market.

Looking ahead, a potential mid-year decision by the US administration on refined copper tariffs could be a key price driver, according to Goldman Sachs Research analyst Eoin Dinsmore.

Anticipation of the import tax has led US buyers to stockpile copper, raising expectations of temporary shortages outside the country.

However, analysts at Goldman Sachs caution that current price levels may not last. “We do not expect prices above $13,000 to be sustained,” the report said.