SunSirs: Copper Prices Bolstered by Multi-Factor Resonance, Lifting Copper Mining Firms in Investor Favor

Copper, known as the " blood vessels" of industry and a conductive metal with high cost performance, has seen its futures price reach new highs recently. On December 5th, the closing price of copper on the London Metal Exchange (LME) was reported at 11,665.0 US dollars/ton, an increase of 32.84% compared to the 8,781.5 US dollars/ton at the end of last year.

Shanghai Steel Network's copper industry analyst Xiao Chuan-kang told the reporter of the Securities Daily: "Multiple factors are resonating, supporting the copper price to rise. Looking forward to the first half of 2026, there is still room for the copper price to rise further. Against this backdrop, upstream copper mining companies are facing positive news, while midstream and downstream companies are facing certain cost pressures."

Both the supply and demand sides drive the increase

The rise in copper prices benefits from tight supply and growing demand. Xiao Chuankang analyzed: "On the supply side, the signal of a 10% reduction in ore production capacity released by the China Copper Raw Materials Joint Negotiation Group, as well as a significant increase in the cancelled warehouse receipts of copper inventories on the London Metal Exchange, have triggered market concerns about supply shortages next year. On the demand side, the electricity demand brought about by the global energy transition, artificial intelligence computing power, etc. has contributed to the growth of copper consumption."

In addition, external factors are also supporting the rise in copper prices. A research report from China Securities shows that the Fed is in a cycle of rate cuts, and the important strategic position of copper in the global industrial chain restructuring is conducive to the copper, which is scarce in resources, to get a high premium.

Regarding the future price trend of copper, Fu Yifu, a special researcher of Suzhou Merchant Bank, said in an interview with a reporter from the Securities Daily: "In the short term, the low inventory and high cancelled warehouse receipts support the price to continue to rise. In the medium term, attention should be paid to the resumption progress of production in producing areas such as Chile, the pace of the Fed's interest rate cuts, and the strength of market demand recovery. If the supply improves or the demand fails to meet expectations, there may be fluctuations at a high level. In the long term, with the growth of demand for new energy and artificial intelligence computing power, the supply and demand may remain in a tight balance, and there is still upward momentum for the copper price."

Li Jinti, general manager of Guangdong Jiaohao International Certification Co., Ltd., a national registered auditor, said: "The recent rise in copper prices has been relatively fast, and a phased adjustment may come next. Looking ahead to the first half of next year, prices are expected to see a lift."

Different "body feel" for upstream and downstream

Copper resources are scarce, and copper mining companies directly benefit from rising copper prices. Zijin Mining Group Co., Ltd. (hereinafter referred to as "Zijin Mining") announced its third-quarter report for 2025, showing that the company achieved operating income of 254.20 billion RMB in the first three quarters, a year-on-year increase of 10.33%; and achieved a net profit attributable to the shareholders of the listed company of 37.864 billion RMB, a year-on-year increase of 55.45%. According to the company's half-year report, the sales revenue of copper business accounted for 27.8% of the company's operating income in the first half of the year.

It is reported that Zijin Mining has accumulated high-quality copper mine resources through years of forward-looking counter-cyclical mergers and acquisitions and global resource integration, and is now in the first echelon of the global copper industry in terms of resource reserves and production scale. The company's second phase of the Giulong Copper Mine in Tibet is planned to be completed and put into production by the end of 2025. This project is the core source of the company's future copper increase and will significantly enhance the company's copper supply capacity.

Midstream and downstream companies are facing cost pressures from rising copper prices. Dongguan Dingtong Precision Technology Co., Ltd. responded to investors' concerns on the Shanghai Stock Exchange e-Interactive platform, saying: "The company's operating income and net profit for the third quarter decreased compared to the previous quarter, mainly due to the impact of the automotive business being affected by the rise in raw material prices such as copper and metal."

Reporters learned that relevant enterprises have actively taken measures such as technological transformation, process optimization, increasing the proportion of high - value - added products, and rationally using futures and options to cope with fluctuations in raw material prices. A relevant person in charge of Zhejiang Sanhua Intelligent Controls Co., Ltd. recently said on the Interactive Easy platform of the Shenzhen Stock Exchange: "The company has adopted a pricing mechanism linked to the copper price with customers and hedging methods to effectively hedge the cost risks brought about by fluctuations in market raw material prices."

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