Kolkata: First the facts. Copper prices appreciated massively in 2025 and reports indicate 50-63% jump on Multi Commodity Exchange (MCX). Copper prices have
shot from Rs 316 per kg in early 2016 to Rs 1,292.50 per kg (Jan 1, 2026). The red metal surged 35-40% on global markets like the LME (London Metal Exchange) and reached record highs above $12,000/tonne. The reasons for this appreciation seems more structural than short-term. The demands of copper are arising from green energy, infrastructure, supply constraints and a trend that has been summed up as “electrification of everything”. Analysts have described the rise of price in the global markets as the sharpest one in more than 15 years despite moderate global growth.
As 2026 rolls on to it third week, the scenario seems just right to ask, whether the Indian markets can see the first copper-focused ETF this year. Till now the only way an investor in India can partake of these gains is by investing in commodity futures on platforms like MCX. However, it is quite easy to understand that for the modern investor copper ETFs will suit his/her needs and there could be a lot of investment in this instrument.
Is this the right time for a copper ETF?
The first gold ETF was launched in 2007 and the first silver ETF hit the Indian market in Jan 2022. Both precious metals have been able to garner huge investments, thanks to their bull runs and the safe-haven demand for both metals. However, there is no copper ETF in India yet.
Copper ETFs are popular both in the US and European countries. In the US copper ETFs offer exposure to investors to the metal through different strategies such as copper futures or copper mining company stocks. Dwelling on the question whether the Indian market is ready for such an ETF, market experts say that the prices are at their peaks and launching ETFs at such a high price may not be the best option since the introduction of new instruments should highlight a long-term strategy and a momentum play.
The momentum of AI, data centres and digital infrastructure are driving a demand supply gap, especially against constraints in global supply. In this aspect it seems to have some similarity with the tailwinds in silver. However, it must be mentioned that silver has a safe-haven demand, which is not applicable for copper, which rests on demand from different industrial sectors.
Copper in a supercycle phase
Analysts also indicate that the appreciating copper prices are also mirrored in the global copper miner indices. The copper price rise is attributed to a prolonged “supercycle” phase. However, copper leaves most investors only looking wistfully from a distance. There are no ETFs like gold and silver. Also there are no bars, coins or jewellery like the two precious metals and commodity futures are the only option.
However, commodity derivatives have not gained popularity with the retail markets, especially due to large margin needs and price volatility. Some investors have to live with the satisfaction of investing in copper companies such as Vedanta, Hindustan Copper and Hindalco.
Expert view on copper ETF
Ross Maxwell, Global Strategy Operations Lead at VT Markets, thinks that the idea is complex to execute. He admitted that copper makes a lot of sense from the perspective of diversification of a portfolio. “But launching at record price levels carries near-term risks. For an ETF to succeed, it must be positioned as a long-term strategic allocation, not a tactical product chasing short-term momentum,” he was quoted in the media as saying.
But copper fits the bill since Indian investors want to hedge against uncertainty and inflation and copper as a global commodity fits the need. Also copper’s demand is more structural than cyclical than platinum, which is a metal with no ETFs in India.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, InvITs and any form of alternative investment instruments and crypto assets.)
