Zheng Quan Shi Bao Wang·2025-09-26 02:14Core Viewpoint - The non-ferrous metal sector is experiencing a strong performance, driven by supply disruptions and regulatory changes in the copper industry, leading to increased copper prices and improved profitability expectations for domestic copper companies [1][2]. Group 1: Market Performance - As of the report, companies like Jingyi Co. and Lida New Materials have seen their stock prices hit the daily limit up for three consecutive days, while Hunan Silver and Jiangxi Copper have also shown significant gains of over 8% and nearly 7%, respectively [1]. - The copper market is expected to strengthen due to ongoing supply concerns, particularly from the Grasberg mine in Indonesia, which remains shut down following an accident [2]. Group 2: Industry Insights - The China Nonferrous Metals Industry Association highlighted the detrimental effects of "involution" competition in the copper smelting industry, urging companies to oppose such practices to align with high-quality development goals [1]. - Regulatory measures are being developed to standardize copper smelting capacity management, indicating a shift towards more structured industry practices [1]. Group 3: Supply and Demand Dynamics - Despite a recent decline in the operating rate for electrical wire and cable production, the operating rate for refined copper rods has increased by approximately 3 percentage points, suggesting stable demand [2]. - The anticipated copper price is projected to reach $10,500 per ton in the third to fourth quarter of 2025, driven by improved supply-demand dynamics and macroeconomic conditions [2]. - The valuation of domestic copper companies is expected to rise to 15-20 times earnings, reflecting a growing recognition of supply shortages and demand growth [2].