Today, there was a tremendous decline in the shares of the metal sector in the stock market. Legendary metal shares like Hindustan Copper, Sale, Tata Steel, Jindal Stainless, Vedanta and NMDC were under pressure on Wednesday. During the trading session, the stocks fell by 4% and reached the lowest level of the day. The reason for this decline is being reported by US President Donald Trump to impose 50% tariff on copper. Earlier, a 50% fee has also been announced on steel and aluminum. Now the news of tariff on copper has created panic among investors. It is believed that Trump can further increase its tariff list, which can also affect other metals.
What is the whole matter?
On Tuesday, Donald Trump made a big announcement, which created a stir in the global metal market. He said that the US is now planning to impose 50% tariffs on copper imports. Its purpose is to promote American domestic production and reduce dependence on foreign supply. Let us tell you that America imports about half of its copper need, in which Chile is its biggest source. During the cabinet meeting at the White House, Trump said, “We are going to increase the tariff on copper to 50%.” However, he did not make it clear when this tariff would be implemented. Since this news, instability in the metal market has increased.
Hindustan Copper rolled the most
Wednesday’s trading session saw a huge decline in metal shares. Hindustan Copper was at the forefront of this decline, with shares of 3.5% to a low of ₹ 264 per share. The cell also closed at ₹ 131.82 with a decline of 2.35%. Apart from this, other metal shares like Tata Steel, Jindal Stainless, Vedanta, NMDC, Hindalco Industries, Hindustan Zinc and Jindal Steel & Power also recorded a decline of more than 1%. There is an atmosphere of fear among investors, because this tariff of Trump can prove to be a big shock for the metal sector.
Stir in the global market too
The impact of the news of tariff on Trump’s copper is not limited to India only. Metal prices also saw fluctuations in global markets. On Tuesday, the price of copper on the comex gained a tremendous jump of 17% and it reached the highest level so far with a record gains of 10% in a day. But on Wednesday, it saw a decline of more than 4% in early trade. The copper also fell by 2.4% on the London Metal Exchange (LME). In Singapore at 10:35 am, the copper price fell 0.7% to $ 9,722 per ton.
There is a panic even before
This is not the first time Trump’s tariff has affected the metal market. In February, when Trump expressed the possibility of tariff on copper, global traders exported a record amount of metal to the US to increase the stock before the tariff is implemented. Now the news of 50% tariff has again stirred up. It is believed that this tariff can be applied in a few weeks, which can put further pressure on metal prices and shares.