Commodity markets are currently experiencing a strong uptrend, with both precious and industrial metals seeing sharp gains in domestic and global markets. Among base metals, copper stood out, with spot prices surging to a two-month high, and on MCX, copper futures (Oct 31) hit an all-time high.
Gold prices in India reached new heights on Wednesday, October 1, crossing the Rs 1,17,000 per 10-gram mark. On MCX, Gold Futures recorded a new high of 1,18,444 per 10 grams. Gold prices in 2025 are rising due to potential US rate cuts, a weakening dollar, inflation concerns, and ongoing geopolitical tensions.
Meanwhile, Silver prices have also seen a peak on the chart. Silver futures on MCX touched a record ₹1.44 lakh per kg on September 29, driven by global price gains, a softer rupee, and strong industrial demand. Spot silver has jumped over 60% on a YTD basis, outperforming gold.
Following gold and silver, base metal copper also saw strong gains, trading above ₹970 per kg on MCX. Copper climbed above $4.9 per pound on Friday, hitting fresh two-month highs as supply disruptions tightened the outlook. On MCX, copper futures hit an all-time high.
The rally has been supported by global supply disruptions. A mud-flow accident at Indonesia’s Grasberg mine halted operations, with production unlikely to return to full capacity until early 2027, prompting operator Freeport-McMoRan to slash its 2026 sales guidance by 35%.
Adding to pressures, Chile’s copper output dropped nearly 10% year-on-year in August, the sharpest fall since 2023, after a late-July earthquake forced Codelco to suspend mining and smelting at its El Teniente site.
On the demand side, expectations of stronger grid investment in China are seen supporting medium-term consumption.
The world is using more copper than ever. Electric vehicles need 2–4 times more copper than regular cars, and renewable energy projects like solar panels and wind turbines use a lot of it too. Countries are also modernising infrastructure, agriculture, and digital networks, so copper demand keeps increasing.
Investors are buying copper as a safe investment during inflation and uncertain times. Tariffs and government rules in producing countries limit supply, and geopolitical tensions making markets nervous, all of which support higher prices.
Companies involved in mining, refining, or financing these commodities are positioned to benefit during such upcycles, with financially strong players particularly well placed to capitalise on the ongoing rally.
Hindustan Copper stands out as India’s only fully integrated copper producer, covering the entire value chain from mining and beneficiation to smelting and refining. With global demand for copper rising, the company is well-positioned to capitalise on this trend. Over the past month, Hindustan Copper’s share price has jumped over 40%.
Vedanta is India’s largest diversified natural resources firm, with operations spanning zinc, silver, aluminium, copper, iron ore, and oil & gas. Its zinc segment, particularly through silver production, adds significant value, while copper smelting offers direct exposure to rising copper prices. The company’s aluminium business further benefits from the global push toward infrastructure development and electrification.
Hindalco Industries is primarily known as India’s top aluminium producer, but it also maintains a notable copper segment that contributes significantly to its revenues and earnings. Its subsidiary, Novelis, is the world’s largest aluminium rolling company, providing Hindalco with international reach and diversified revenue streams beyond India.
As copper prices continue to rise, these copper related stocks are likely to remain in focus. With supply constraints and macroeconomic factors driving the rally, copper-related companies such as Hindustan Copper, Vedanta, and Hindalco are likely to benefit.
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