According to a research report by Morgan Stanley on July 17, the State Administration for Market Regulation recently issued new Regulations on Fair Competition Review, which explicitly stipulate that without legal or administrative regulations or approval by the State Council, no preferential tax policies, selective differential fiscal incentives or subsidies, or other factors that affect production and operation costs shall be provided to specific operators. The new regulations will take effect on August 1 and are expected to have an impact on the supply of copper scrap in mainland China. The bank pointed out that except for Jiangxi province, other provincial governments have provided preferential subsidies to copper product companies using copper scrap as raw material, and under the new policy such preferential treatment will be cancelled starting from August. Industry sources said that some anode plate and crude copper producers have recently suspended production by squeezing copper scrap, which may lead to a short-term decline in refined copper production. Morgan Stanley believes that coupled with the currently tight supply of copper concentrates, copper prices will continue to be supported in the short term, and Zijin Mining Group and CMOC Group Limited are expected to react positively in the industry.