Copper Boom Fuels Expectation for Strong Earnings Growth

Rising demand from essential industries and limited supply growth are expected to support copper prices in the long term, according to an Aditya Birla Capital report.

The report highlights that a combination of factors such as new demand avenues, limited mine development projects, and delayed expansions will push the copper market into a prolonged deficit, supporting elevated copper prices.

Copper prices are expected to remain near record high levels due to these factors, which will benefit non-ferrous equities like Hindustan Copper, National Aluminium Company Limited, Vedanta Aluminium Metal, Vedanta Limited, and Hindustan Zinc.

The report states that companies like NALCO, Hindustan Copper, Hindustan Zinc, and Gujarat Mineral and Development Corporation (GMDC) are building capabilities across rare earths and crucial minerals, making them direct beneficiaries of the cycle.