Hindustan Copper shares jump 4% to 52-week high as copper hits record levels. Can rally sustain in 2026?

Shares of Hindustan Copper rallied as much 4% to its fresh 52-week high of Rs 574 on January 6, after the global copper prices scaled to fresh peaks fuelled by a renewed rush to ship metal to the US fired up bullish traders and investors. With today’s surge, the stock is up 11% in 2026, rising for all 4 sessions of the year.

Benchmark prices on the London Metal Exchange surged as much as 4.4% to $13,000 per metric ton, the latest in a series of leaps higher that have lifted copper more than 20% since mid-November.

The rally has been driven by a scramble to ship copper into the US, as the looming threat of import tariffs under President Donald Trump has pushed US copper prices to trade at a sustained premium to those on the LME. This arbitrage has raised concerns about potential copper shortages in other parts of the world and has further emboldened bullish investors, who are already positive on the metal due to its critical role across key growth themes ranging from data centres to electric-vehicle batteries.

Can prices sustain? Goldman Sachs offers a slightly bearish view as it expects the London Metals Exchange (LME) copper price to remain in a range of $10,000-$11,000 “as strong global demand growth from the grid and power infrastructure, backed by investment in strategic sectors such as AI and defence” keep prices from falling below $10,000. The LME copper price is forecast to average $10,710 in the first half of 2026.

“While the global copper market has been in surplus this year, a combination of limited growth in the supply from mines and rising structural demand from power infrastructure should create more of a balance between supply and demand next year, and lift prices beyond 2026,” the international brokerage said.

However, one factor that could lead to higher demand on the London copper market next year is the potential for the US to place tariffs on refined copper imports. The US commerce secretary is expected to make a recommendation on copper tariffs to the White House by June 2026 (and possibly sooner), Goldman Sachs Research’s base case is that a refined copper tariff of at least 25% will be implemented shortly after.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)