Hindustan Copper shares fall over 5%. What’s behind the sharp selloff?
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Shares of Hindustan Copper dropped 5.5% to an intraday low of Rs 579 apiece on the BSE on Thursday as global copper prices reversed sharply after logging their biggest single-day gain in more than three years on February 3. The pullback came as investors refocused on concerns around Chinese demand following heightened volatility in the industrial metal. Copper prices settled 3.2% lower, and recent swings reflect heightened uncertainty across base and precious metals this year, with investors rapidly unwinding bullish bets after sharp rallies. Although copper remains up roughly 5% so far this year, with prices touching a record above $14,500 a ton last week. Market pressure has been linked to signs of weakening spot demand in China, the world’s largest consumer, where higher prices have made the metal expensive for fabricators. Inventories in London Metal Exchange warehouses across Asia have also increased, adding to concerns of softening ...