Hindustan Copper shares rose 6% on September 25 as Shanghai copper touched a six-month high on Thursday after Freeport-McMoran declared force majeure at its Indonesia Grasberg mine, with traders pricing in further tightness of raw material supply.
A phased restart may occur in the first half of 2026, and the 2026 output from the Grasberg, one of the world's biggest copper and gold mines, will potentially be 35% lower than previous estimates, Freeport said on September 24.
Market has been pricing in some tightness in copper raw material since the suspension, with the latest development supporting further move upwards.
At 11:05 am on September 25, Hindustan Copper shares on NSE were trading 5.6% higher at Rs 326 apiece. The 52-week high of the stock is Rs 353 and 52-week low is Rs 184. The market capitalisation of the stock is Rs 31,550 crore.
By 0310 GMT, the most-traded copper contract on Shanghai Futures Exchange jumped 2.86% to trade at 82,280 yuan ($11,545.64) per metric ton, the highest level since March 26.
The affected output volume from Grasberg mine was far higher than expected, supporting stronger price outlook for copper in the short term, analysts at Chinese broker Jinrui Futures said in a note.
The incident at Freeport highlights how vulnerable the copper market is to global supply shocks as tightness increases. It’s the latest disruption to the industry after Hudbay Minerals Inc. said this week it was shutting operations at a mill in Peru due to political protests.
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