Hind Copper, Tata Steel Shares Rally as Metal Sector Gains on Supply Concerns

Market Performance

Metal stocks reversed a three-day losing streak on October 9, 2025, with the Nifty Metal index climbing 1.6%. Gains were led by Hind Copper and Tata Steel, as investors reacted to ongoing supply concerns in global base metals.

• Hind Copper rose 4.6%
• Tata Steel climbed 3.05%
• Other notable gainers: SAIL up 3.07%, NALCO 2.4%, NMDC 2.3%

The rally marked a strong comeback after the sector had fallen 1.4% in the previous three sessions.

Main News: Supply Concerns Drive Prices Higher

Copper prices are trading near record highs due to multiple mine outages worldwide. Indonesia’s Grasberg mine, the world’s second-largest, remains disrupted, with operations at Freeport-McMoRan Inc. expected to resume only by mid-2026.

• LME copper prices surged above $10,660 per tonne due to this disruption.
• Shanghai copper contracts rose 4.22% to 86,730 yuan ($12,165.97) per metric ton, hitting a 16-month high as trading resumed in China after the National Day holiday.

Iron ore futures also strengthened amid restocking at Chinese steel mills, though trade restrictions and margin concerns moderated gains.

Company Details: Tata Steel Production and EU Trade Updates

Tata Steel reported robust production at its Indian plants for the September quarter.

• Crude steel production: 5.67 million tonnes, up 8% quarter-on-quarter and 7% year-on-year.
• April–September production: 10.90 million tonnes, a 3% increase from last year.
• Growth driven by normalization after relining of the Jamshedpur blast furnace.

Meanwhile, the European Commission proposed cutting tariff-free steel import quotas by almost 50%, with a 50% duty on excess shipments. This move aims to support EU steelmakers operating at 67% capacity and could indirectly benefit Tata Steel, which has a 7 MTPA production facility in the Netherlands, contributing 25% of its consolidated revenue.

Summary of Financial Trends and Sector Sentiment

The metal sector is showing signs of strong performance:

• Base metal producers benefited from supply tightness and rate cut expectations.
• Hind Copper, Tata Steel, and other PSU metal companies saw gains on positive market sentiment.
• Government initiatives, such as the Rs 7,350-crore rare-earth magnet scheme, aim to boost domestic production and reduce reliance on imports, supporting miners like Hindustan Zinc and NLC India.

Recent Stock Performance

• Hind Copper and Tata Steel led sector gains, snapping a multi-day decline.
• Positive factors included supply disruptions at major mines, EU trade policy changes, and strong domestic metal demand.