Rising global demand for renewable energy is expected to drive up prices of key industrial metals such as copper and silver, as countries accelerate the shift away from fossil fuels amid geopolitical tensions.

Copper climbed to a three-week high following the announcement of a temporary ceasefire between the US and Iran and the reopening of the Strait of Hormuz, easing concerns over inflation and a potential global economic slowdown.

Barrick Mining is postponing its major copper and gold project in Pakistan due to the ongoing Middle East conflict and the worsening security situation in the South Asian country, based on correspondence reviewed by the outlet.

Rio Tinto reported flat full-year earnings, as strong copper performance helped offset weaker conditions in its core iron ore business.

Copper prices have surged to historic levels as a speculative trading wave in China fuels a powerful rally across global metals markets, pushing prices to heights not seen in more than a decade.

Metal stocks fell sharply on Thursday, January 8, with the NIFTY METAL index dropping 3.46% to 11,124.70. All 15 constituents traded in the red, led by Hindustan Zinc (down 5.75%) and Hindustan Copper (down 4.47%).

Global copper demand is set to surge 50% by 2040 as artificial intelligence, defense and robotics industries expand, but production will struggle to keep up without major investment in new mines and recycling, consulting firm S&P Global warned on Thursday.

Hindustan Copper, India’s leading copper producer, saw its shares rise for the eighth consecutive session on Tuesday, surging up to 41% over the last eight trading days to an intraday high of ₹519.80. The stock hit a record high of ₹545.95 in the previous session amid strong domestic and international copper prices.

Copper prices surged to a record near $13,000 per ton in volatile trading as the London Metal Exchange (LME) reopened after the Christmas holiday, extending a year-end rally driven by concerns over tightening supply.

Copper extended a strong rally in December, pushing prices for the industrial metal to record levels above $12,000 a ton, driven by concerns over a tighter global market in 2026.