Copper prices seen staying above $14,000; Hindustan Copper banks on cost discipline for expansion
Hindustan Copper expects global copper prices to remain above $14,000 per tonne due to a persistent supply-demand gap. The company plans to leverage its strong EBITDA margins and cost discipline to fund a ₹7,000 crore expansion project aimed at increasing mining capacity by 2030.
Why it matters
As a key industrial metal, copper's price stability and the expansion of domestic mining capacity are vital for India's industrial and manufacturing sectors.
Global benchmark copper prices are expected to remain above the $14,000-per-tonne mark, while Hindustan Copper’s cost discipline will ensure the financial viability of its expansion plans, Chairman and Managing Director Anupam Misra told The Hindu in an exclusive interaction.
Mr. Misra said the current surge in copper prices was largely driven by a widening demand-supply gap. Global copper demand is currently estimated at about 28 million tonnes, against supply of around 23 million tonnes.
“That kind of a gap exists [between supply and demand]. Therefore, benchmark prices [at the London Metal Exchange] are going to be above $14,000 per tonne,” he said.
At the time of writing, benchmark copper prices were trading 0.05% higher than the previous close at $14,508.85 a tonne.
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