Metal stocks in India down 3.5%: Here we decode why
What's the story
A number of domestic metal shares, including Hindustan Copper, SAIL, Tata Steel, Jindal Stainless, Vedanta and NMDC witnessed heavy selling pressure during today's trading session. The shares fell as much as 3.5% from the previous close. The fall came after US President Donald Trump announced a new tariff on copper imports in addition to the already imposed 50% duties on steel and aluminum.
Market reaction
Hindustan Copper, SAIL lead fall
The market reacted strongly to Trump's decision, with Hindustan Copper leading the fall by 3.5% to ₹264 per share. SAIL followed suit, falling 2.35% to ₹131.82. Other metal stocks such as Tata Steel, Jindal Stainless, Vedanta and NMDC also witnessed a decline of over 1%. The move has raised concerns that Trump may extend his tariff regime to other industrial metals and commodities as well.
Tariff details
Trump to impose 50% tariff on copper imports
During a Cabinet meeting yesterday, Trump announced plans to impose a 50% tariff on copper imports. The move is aimed at boosting domestic production and reducing reliance on foreign supply. The US presently imports nearly half of its copper needs from Chile.
Price fluctuation
Copper futures jumped 17%
Copper futures jumped 17% on Comex yesterday, the biggest one-day gain ever, before falling over 4% in early trading today. On the London Metal Exchange (LME), copper fell 2.4% at today's open before trading 0.7% lower at $9,722 a ton. The metal is widely used in construction, electronics, automotive and electrical equipment manufacturing sectors. A sharp rise in copper prices could affect cost structures across these industries.