After three straight sessions of losses, metal stocks made a strong comeback on October 9, fueled by supply concerns from key global mines and optimism around easing interest rates. The sector staged a sharp rebound, pulling investor attention back to the metals space.
Market Performance: Nifty Metal Leads the Charge
The Nifty Metal index turned out to be the top gainer, rising 1.6% after shedding 1.4% over the last three sessions.
The rally was broad-based, with several heavyweights and PSU names climbing sharply through the day.
- Hindustan Copper surged 4.6%
- SAIL (Steel Authority of India Ltd) jumped 3.07%
- Tata Steel share price gained 3.05%
- NALCO added 2.4%
- NMDC rose 2.3%
The bounce reflected a mix of supply-side worries and improving global sentiment for base metals.
Supply Disruptions Push Copper Prices Near Record Highs
The sharp movement in copper prices came on the back of supply disruptions from major global mines.
Freeport-McMoRan’s Grasberg mine in Indonesia, one of the world’s second-largest copper producers, faced significant operational issues and may only resume operations by mid-2026, according to Indonesia’s state agency Antara.
This development pushed copper prices closer to record highs, tightening global supply and fueling investor interest in domestic producers like Hindustan Copper.
Adding to the sentiment, minutes from the U.S. Federal Reserve signaled a willingness to cut interest rates later this year, likely in October or December, which often boosts demand for non-yielding assets like metals.
China’s Return from Holiday Spurs Further Price Momentum
When trading resumed in China after the National Day holiday, copper prices extended gains.
The Shanghai Futures Exchange saw its most-traded copper contract close 4.22% higher at 86,730 yuan per metric ton (≈ $12,166) — the highest level in more than 16 months.
Iron ore futures also advanced, driven by restocking at Chinese steel mills post-holiday, although profit concerns and trade restrictions kept overall sentiment mixed.
Company Focus: Tata Steel’s Strong Output Recovery
Back home, Tata Steel reported solid production figures for the September quarter:
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Crude steel output: 5.67 million tonnes
– Up 8% quarter-on-quarter
– Up 7% year-on-year
The company attributed this growth to the normalisation of operations following the completion of blast furnace relining at its Jamshedpur plant.
In the April–September period, Tata Steel’s Indian operations produced 10.90 million tonnes, marking a 3% year-on-year rise.
The numbers include output from both standalone units and Neelachal Ispat Nigam Ltd. (NINL) on a pro forma basis.
Global Trade Developments Support Indian Steelmakers
The European Commission recently proposed a significant move to protect its domestic steel industry:
- Tariff-free steel import quotas may be cut by nearly 50%
- A 50% duty could be imposed on shipments beyond those limits
The measure aims to push EU steelmakers’ utilisation from 67% toward 80%, restoring competitiveness in the region.
For Indian players like Tata Steel and SAIL, the immediate impact is expected to be limited, as their export share remains below 8%.
However, Tata Steel’s 7 MTPA capacity in the Netherlands, which contributes 25% of its consolidated revenue, could benefit from this policy shift.
What’s Driving the Sentiment in Metal Stocks?
Several tailwinds have come together to lift the metal sector out of its slump:
- Severe mine disruptions in Indonesia have cut about 3% of global copper supply
- Copper prices on the LME surged above $10,660 per tonne
- EU tariff adjustments are expected to favour companies with European footprints
- Government policy support in India for domestic mineral production has brightened the medium-term outlook
Together, these factors reignited buying momentum in metal counters, turning the tide after three days of declines.
Broader Sector Outlook
While global headwinds remain, domestic demand and lower steel prices are providing some relief for Indian producers.
Analysts tracking the sector note that base metal producers could report a strong September quarter, helped by higher prices and a softer dollar.
At the same time, iron ore and aluminium producers may see pressure from cost constraints and demand moderation in the second half of FY26.
On an overall basis, the metal sector is positioned for a stable-to-positive quarter, as India’s infrastructure activity, export resilience, and global supply concerns continue to shape the narrative.
Summary
- Metal stocks ended their 3-day losing streak with the Nifty Metal index up 1.6%.
- Hindustan Copper, SAIL, and Tata Steel led the rally with gains between 3%–4.6%.
- Global supply disruptions and EU trade protection measures boosted sentiment.
- Tata Steel showed strong operational recovery, with 8% QoQ growth in crude steel output.
- Copper prices climbed near record highs amid mine outages and rate-cut hopes.
The day’s rally highlights how a mix of tight global supply, resilient domestic demand, and supportive policy moves can quickly swing sentiment in favour of the metals sector.
