Shares of copper producers Hindustan Copper, Hindalco and Hindustan Zinc rose up to 18 per cent in an otherwise weak market session on the back of rally in copper prices internationally. Base metals stormed higher on Monday, with copper rallying above $9,000 a ton on bets that increased demand driven by the recovery from the pandemic will spur a historic deficit, putting the economic bellwether on course for a record run of monthly gains. Nickel topped $20,000 a ton, news agency Bloomberg reported.
Copper climbed more than 3% on Monday and is heading for an unprecedented eleventh monthly rise in February. Metals are on tear on expectations that post-crisis demand will outstrip near-term supply. That may both reinforce speculation about about a new commodity supercycle and stoke concern about rising price pressures as the world economy recovers from the pandemic.
The metal’s revival marks a turnaround from earlier in the month, when copper hit turbulence as investors signaled the need for more details about stimulus measures and on concerns about a softening in Chinese demand. But prices rose during China’s Lunar New Year as factory production was more buoyant than usual.
As of 1:38 pm, shares of Hindustan Copper traded 15 per cent higher at Rs 99, Hindalco was up 3 per cent at Rs 318 and Hindustan Zinc climbed 2 per cent to Rs 307, outperforming the Sensex which was down nearly 2 per cent.
(With inputs from Bloomberg)
