Key Takeaways
Copper and mining stocks surged on May 13, with Hong Kong-listed China Nonferrous Mining jumping 5.52 percent, as analysts upgraded sector peers on a bullish outlook for industrial and precious metals.
"The rally in metal stocks are driven by a combination of global commodity strength, China recovery expectations, falling inventories, and renewed infrastructure optimism across major economies," Ponmudi R, CEO at Enrich Money, said.
The rally was widespread. In Hong Kong, MMG Ltd. rose 4.25 percent and Jiangxi Copper Co. gained 2.17 percent. The move mirrored strength in other markets, with India's Nifty Metal index climbing over 1 percent and outperforming the benchmark Nifty 50. In the U.S., shares of Freeport-McMoRan and Hudbay Minerals touched two-year highs after Bank of America raised its rating on the stocks to "buy."
The gains reflect growing conviction that demand for copper, driven by the global energy transition, will outstrip a constrained supply. Bank of America's commodity team sees a "particularly constructive outlook on copper" and has become "materially more bullish on gold," projecting prices could reach $3,000 an ounce by the end of 2025.
The bullish sentiment was amplified by Bank of America, which upgraded Freeport-McMoRan (FCX), Hudbay Minerals (HBM), and Alamos Gold (AGI) to "buy" from "neutral." Analysts at the bank cited a constructive outlook for copper, fueled by demand from the energy transition and limited supply.
For Freeport-McMoRan, the bank highlighted its "high quality copper leverage, robust and rising free cash flow, and material gold revenue." The upgrades sent shares of Freeport-McMoRan and Hudbay Minerals to their highest levels in over two years, while Alamos Gold shares reached highs not seen in more than a decade.
The rally is not isolated. In India, the Nifty Metal index has climbed 16 percent so far in 2026, against a nearly 10 percent decline in the benchmark Nifty 50 index. Analysts pointed to a combination of factors including a weaker rupee improving export realizations and strong domestic demand from infrastructure projects.
"The outlook for metal sector for CY2026 remains constructive," said Hariprasad K, founder of LIvelong Wealth, noting that India’s infrastructure push and manufacturing expansion are expected to keep domestic metal demand strong. This sentiment is echoed by investment firms like BlackRock, which remain overweight emerging market equities, favoring commodity exporters as part of a pro-risk stance.
This article is for informational purposes only and does not constitute investment advice.
