Flirting At 2-Yr Highs

/2 min read

ADVERTISEMENT

Sector macroscope: Copper, Cocoa, and Aluminium.
Flirting At 2-Yr Highs

COPPER PRICES have surged by $0.70/LB, an increase of 18.08% since the beginning of 2024, and are now at levels not seen since June 2022. Prices are reaching closer to $10,000 per metric tonne, last time it crossed the mark was in March 2022, when it hit a high of $10,845. The current rally is attributed to fears of production cuts in China and a growing demand, particularly from the green energy sector. As copper is a crucial component in vehicles, mobile phones, power lines, solar panels, and wind turbines, it plays a significant role in the transition to renewable energy. Given the current trends, prices are expected to climb further throughout the year with Goldman Sachs rerating its copper forecast to $12,000/tonne from $10,000/tonne.

Not Sweet Anymore

COCOA FUTURES have fallen to around $8,620 per tonne in May, following last month’s peak at $12,218 per tonne on April 19. Despite a sharp 20% drop in the last two sessions of April, the market remains highly volatile, influenced by severe liquidity constraints. However, the long-term outlook for cocoa prices remains bullish, fuelled by uncertainties over global supply and issues such as adverse weather, aging trees, and crop diseases in West Africa, a region that produces over half of the world’s cocoa.

fortune magazine cover
Fortune India Latest Edition is Out Now!
The Year Of EV Launches

September 2025

2025 is shaping up to be the year of electric car sales. In a first, India’s electric vehicles (EV) industry crossed the sales milestone of 100,000 units in FY25, fuelled by a slew of launches by major players, including Tata Motors, M&M, Ashok Leyland, JSW MG Motor, Hyundai, BMW, and Mercedes-Benz. The issue also looks at the challenges ahead for Tata Sons chairman N. Chandrasekaran in his third term, and India’s possible responses to U.S. president Donald Trump’s 50% tariff on Indian goods. Read these compelling stories in the latest issue of Fortune India.

Read Now

On The Boil

ALUMINIUM PRICES have reached unprecedented highs, increasing by more than 20% since the beginning of the year from $2,160/tonne to $2,645/tonne. As a result prices of Indian aluminium, too, have gone up from ₹200 to ₹240. This surge is driven by heightened demand for industrial metals amid a resurgence of manufacturing activities in major economies, including the U.S. and China. Shares of major Indian companies such as Hindalco Industries and Nalco have hit lifetime highs, gaining 16-25% over the past month. Shares of Vedanta, the country’s largest aluminium producer, are up 48% over the same period, indicating robust profit in store for commodity sellers.

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.