EU Copper Ban Fuels Volatility: Indian Miners Eye Supply Gap

Market snapshot: The European Union is finalizing a ban on Russian copper and platinum imports as part of a February 2026 sanctions package. While this tightens global supply, Indian metal stocks are navigating a complex storm of record commodity prices versus a recent liquidity-driven sell-off triggered by the silver crash.

Summary: EU sanctions on Russian metals are set to squeeze global copper supplies further. Despite a recent correction in Indian metal stocks due to broader market volatility, fundamental demand remains robust with LME copper hitting record highs of ~$13,965/tonne.

Key Takeaways

• EU to ban Russian copper and platinum; global supply deficit expected to widen.
• LME Copper hit record $13,965/tonne; MCX Copper touched ₹1,432/kg.
• Hindustan Copper and Hindalco face short-term stock volatility despite bullish commodity fundamentals.
• Hindalco commits ₹21,000 Cr to Odisha expansion to capture domestic demand.

SAHI Perspective

The disconnect between rising physical copper prices (driven by AI/EV demand and sanctions) and falling equity prices (driven by sentiment and margin calls) creates a classic value divergence. Indian producers with integrated supply chains are best positioned to absorb the volatility and benefit from the structural deficit.

Closing Insight

As Russian metal exits European supply chains, the premium for non-sanctioned copper will likely persist. Watch for Indian miners to pivot export strategies or ramp up domestic capacity to fill the void.

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