Hindustan Copper, a state-owned firm that mines copper ore in India, has seen its stock price rise in recent months, coinciding with an increase in copper prices. The shares have increased by 118% in the past five months, from ₹143.20 to ₹312.80 per share.
Over the last year, it has returned 215%. In the previous trading session, the stock reached a 12-year high of ₹312 apiece after gaining 12.5%.
The corporation stands to benefit from the rise in global copper prices. It is the only copper mining firm in India with completely constructed infrastructure facilities.
Marching upward
Copper prices rose on Monday as Chinese factory activity increased for the first time in six months. Experts say the manufacturing purchasing managers index (PMI) rose to 50.8 in March from 49.1 in February, signalling expansion in the world’s second-largest economy.
The most-traded May copper contract on the Shanghai Futures Exchange experienced its highest daily increase in two weeks in the previous session, owing to improved demand predictions from China, the world’s top copper consumer.
Furthermore, prices were supported by anticipation of reduced supply as Chinese copper smelters proceeded towards a coordinated output cut in response to lower ore supplies. Furthermore, concern that the Federal Reserve’s cycle of interest rate hikes may be coming to an end has boosted the copper market.
Copper prices resumed their surge on Tuesday, as the May copper contract on the Shanghai Futures Exchange rose 0.4% in the early trade to 73,140 yuan ($10,115.48) per metric tonne, not far from an all-time high of 73,530 yuan reached on March 22. Reuters
