The Zhitong Finance App learned that copper stocks generally rose in early trading. As of press release, China's non-ferrous mining industry (01258) rose 6.28% to HK$6.77; Minmetals Resources (01208) rose 4.27% to HK$3.66; Luoyang Molybdenum (03993) rose 4.76% to HK$7.49; Zijin Mining (02899) rose 3.17% to HK$17.6.

SDIC Securities released a research report saying that Zambia is cutting electricity supply, and the China-Africa copper belt is facing a reduction in production. Copper mine production cuts continue to occur, and expectations for the resumption of production at the Cobre Panama and Sossego copper mines, which were cut off earlier, have been postponed again. Britain and the US sanctioned Russian metals and restricted Russian aluminum, copper and nickel transactions in LME and CME. Russian Copper accounts for 62.1% of LME inventory, which limits delivery or raises market concerns about the risk of overclosing positions. The supply-side logic continues to be implemented, and we continue to be optimistic that the copper price will move further upward after the breakthrough.

CICC said that in the medium to long term, improving demand is a necessary condition among the driving factors of this round of copper price increases, but supply-side issues have been priced to a greater extent. If supply risks subside, copper prices will face the risk of a pullback. However, we suggest that there are medium- to long-term supply risks in this cycle, such as rising resource protectionism, reduced metal circulation efficiency, and lower mine capital expenditure, etc., compounded by the recovery in global manufacturing sentiment and more copper demand in electrification. The copper price center is expected to move upward in the medium to long term.