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Vedanta, Suzlon, Hind Copper and other stocks to watch as copper prices surpass $11,000 per tonne to break March 2022 record

Copper hit a new record high, extending a months-long rally driven by financial investors who rushed into the market in anticipation of supply shortages.

CNBC-TV18 Note: Suzlon, Vedanta, Hindustan Copper and Havells are among the stocks that could react to copper prices hitting a new record.

ALSO READ: Why copper is now more attractive than diamond

Futures contracts on the London Metal Exchange jumped 4.1% to $11,104.50 per tonne, surpassing the previous record set in March 2022. The global copper world is being rocked by a massive squeeze in the New York market , where prices are reaching unprecedented levels. high last week.

LME Copper Price Chart

This short squeeze pushed Comex prices to an unprecedented premium over the LME and sparked a rush to reroute metals supplies to the United States.

“The Comex short squeeze is redirecting copper to the United States and reducing supply in other regions,” Gong Ming, an analyst at Jinrui Futures Co., said by telephone. “The Chinese market is expected to see its stocks soon withdraw with an increase in exports. »

ALSO READ: On April 10, 2024, CNBC-TV18 reported that copper prices could exceed $12,000 per tonne, citing a forecast from Max Layton, global head of commodities at Citi.

A chorus of investors, traders and mining executives have warned of a looming multi-year deficit, saying it could send prices soaring. Demand for the metal has increased due to its role in the energy transition, while supply from new mines appears limited.

Copper is up more than a quarter since the start of this year. A sudden tightening of ore supplies has raised the possibility that the global market could face a long-promised deficit sooner than expected if smelters respond by cutting production of the refined metal.

ALSO READ: Nirmal Bang forecasts double-digit rise in copper demand in India

A series of setbacks at major mines in recent months has prompted a flurry of buying by investors, even as many in the physical trade have warned the market is ahead of reality. Demand remains relatively tepid, particularly in China, the main buyer, where inventory levels remain high.

However, supply disruptions and sustained price increases have emboldened copper buyers while drawing financial investors into the market in a bid to bet on further gains. Copper was up 3.5% at $11,040 a tonne as of 10:23 a.m. Shanghai time.

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