CITIC Construction Investment: Uncertainty exists in the future trend of copper prices.

The CITIC Securities research report stated that the price of copper surged due to supply disruptions, demand growth, and changes in trade flows, with uncertainty in future trends. On the supply side, supply disruptions last year in Indonesia and Chile caused supply interruptions, with strikes at copper mines in Chile exacerbating shortages, a decline in the proportion of copper mining production in South America, delays in approving new projects, and low smelting fees leading to smelting plants reducing production capacity. On the demand side, the transition to new energy and AI infrastructure drove copper consumption, with demand for copper in electric vehicles and data centers higher than in traditional fields. On the trade side, the expectation of additional copper tariffs by the United States prompted traders to export copper to the United States, increasing the tightness of supply in other regions. The actual pace of changes in US tariff policies and inventory flows in the future is unclear, "aluminum replacing copper" is difficult in the short term, the impact of the growth in recycled copper supply remains to be observed, these variables make the trend uncertain.