Core Insights - In July, China's refined copper exports reached 118,398 tons, representing a nearly 50% month-on-month increase and exceeding the levels from the same period last year [1] - Speculation regarding the U.S. copper tariff policy, expected to take effect on August 1, created strong export motivation among domestic smelters before the end of July [1] - Following the U.S. announcement of copper import tariffs, the scope was much narrower than market expectations, leading to a significant drop in COMEX copper prices and disrupting the underlying logic of global copper inflow to the U.S. [1]

Group 1 - The core viewpoint of the article is that Huayong Securities has given a "buy" rating for Hailiang Co., Ltd. (002203.SZ) based on recent changes in copper tariffs and the company's potential to benefit from these changes [1] - The significant change in Trump's copper tariff policy has excluded copper raw materials and scrap, leading to a sharp decline in copper prices [1] - Hailiang Co., Ltd. has copper processing capacity in the U.S., which is expected to directly enhance profits and benefit from the new copper tariff policy [1] Group 2 - Potential risks include slower-than-expected progress in North American copper pipe business, fluctuations in raw material prices, changes in tariff policies of major economies, geopolitical risks, and uncertainties in cooperation matters [1]

Core Viewpoint - The U.S. government has announced a 50% tariff on imported copper semi-finished products and high-copper-content derivatives, effective August 1, which has led to a significant drop in copper prices on the COMEX, highlighting the unexpected nature of the policy and its impact on the market [3][9]. Group 1: Tariff Impact - The 50% tariff applies to copper semi-finished products such as copper pipes, wires, rods, and sheets, as well as high-copper-content derivatives like fittings and electrical components, while excluding copper ore, concentrates, and cathodes [9][10]. - Following the announcement, COMEX copper futures prices fell by over 18% in a single day, marking the largest single-day drop in history [3][5]. - The market had anticipated a broader application of tariffs, leading to a miscalculation by major investment banks like Goldman Sachs, which had advised clients to buy call options on copper futures prior to the announcement [3][6]. Group 2: Market Reactions - The COMEX-LME (London Metal Exchange) copper premium rose from a neutral position to approximately 30% before the tariff announcement, driven by speculation about the tariffs [5][10]. - After the tariff announcement, the COMEX copper premium returned to a neutral position, indicating a significant market correction [5][10]. - Investors who had taken long positions in copper futures prior to the announcement faced substantial losses due to the rapid price decline [6][7]. Group 3: Supply and Demand Dynamics - The U.S. has a significant annual copper consumption of approximately 1.7 million tons, with a production shortfall of about 770,000 tons, necessitating imports primarily from Chile, Canada, and Mexico [9][10]. - The U.S. copper import policy aims to protect domestic production capabilities, as the country has limited smelting capacity, producing only about 3.3% of global refined copper [10][11]. - Analysts suggest that the copper market will need to adjust to the new tariff environment, with potential long-term implications for supply and demand dynamics, particularly as the market digests the impact of the tariffs [13][14]. Group 4: Future Outlook - Analysts predict that the main factors influencing copper prices in the second half of the year will include copper concentrate shortages, rising raw material costs, and the potential for a U.S. interest rate cut [13][14]. - The copper market is expected to return to fundamental supply and demand considerations, with the recent tariff policy's negative impact largely absorbed by the market [14]. - There is a recommendation for investors to consider trading in less policy-affected markets like LME and SHFE (Shanghai Futures Exchange) copper futures, as the long-term upward trend in copper prices remains intact despite short-term volatility [14].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The copper market is under pressure with a weak fundamental outlook and is expected to be volatile. After the implementation of copper tariffs, the market has returned to fundamentals. With prices continuously falling, downstream buyers are purchasing at lower prices, leading to improved trading sentiment. The short - term market trend is bearish, and the price is expected to find support around 78,000 yuan/ton. Attention should be paid to whether tonight's non - farm payroll data affects the interest rate cut expectation [1]. 3. Summary by Directory Strategy Analysis - On August 1, the US imposed a 50% import tariff on semi - finished copper products and copper - intensive manufactured goods, with the scope far lower than market expectations, causing a sharp decline in New York copper prices. The US dollar has been rising, putting pressure on the market. In China, in July, the SMM electrolytic copper production increased by 3.94 million tons month - on - month and 14.21% year - on - year. Although TC/RC fees are still negative, they have stopped falling. Smelters can currently rely on by - products to make up for losses and have raw material reserves, so production enthusiasm is okay. The concentrated maintenance season is expected to be in the third quarter or after a significant reduction in raw material inventory. The future tariff on copper semi - finished products may affect export demand [1]. Futures and Spot Market Conditions - **Futures**: The Shanghai copper futures market opened low, rose in the afternoon, and closed lower at 78,400 yuan/ton. The number of long orders from the top twenty decreased by 5,658 to 110,615 hands, and the number of short orders decreased by 3,371 to 110,750 hands [4]. - **Spot**: The spot premium in East China was 165 yuan/ton, and in South China it was - 15 yuan/ton. On July 31, 2025, the LME official price was 9,650 US dollars/ton, and the spot premium was - 44 US dollars/ton [4]. Supply Side - As of July 25, the spot rough smelting fee (TC) was - 42.73 US dollars/dry ton, and the spot refining fee (RC) was - 4.26 US cents/pound [6]. Fundamental Tracking - **Inventory**: SHFE copper inventory was 20,300 tons, an increase of 727 tons from the previous period. As of July 31, the copper inventory in the Shanghai Free Trade Zone was 75,100 tons, an increase of 3,500 tons from the previous period. LME copper inventory was 141,800 tons, a slight increase of 3,550 tons from the previous period. COMEX copper inventory was 257,900 short tons, an increase of 1,967 short tons from the previous period [8].

Group 1 - The stock price of Luoyang Molybdenum Co. closed at 8.94 yuan on July 31, down 0.40 yuan, a decrease of 4.28% from the previous trading day, with a trading volume of 2.225 billion yuan and a turnover rate of 1.41% [1] - Luoyang Molybdenum is primarily engaged in the mining, smelting, and deep processing of metals such as molybdenum, tungsten, copper, and gold, with applications in industries like steel, electronics, and chemicals. The company covers a complete industrial chain including mining, smelting, and logistics [1] - On the news front, U.S. President Trump announced a 50% tariff on imported semi-finished copper products, excluding refined copper, leading to a general decline in copper mining stocks and concerns about potential changes in the global copper trade landscape. Data shows that in 2024, China will account for only 5.2% of U.S. copper imports, indicating a relatively limited impact on China's downstream copper industry [1] Group 2 - On July 31, Luoyang Molybdenum experienced a net outflow of 354 million yuan in principal funds, representing 0.23% of its circulating market value [2]

Core Viewpoint - The article discusses the significant drop in copper prices on the New York COMEX, which fell over 20%, marking the largest single-day decline on record, primarily due to unexpected tariff announcements by the Trump administration [2][4]. Group 1: Market Reaction - On July 31, the New York COMEX copper opened sharply lower, experiencing a decline of nearly 22% [2]. - The price of copper reached a historical high of $5.95 per pound before the tariff announcement, indicating a rapid shift in market sentiment [5]. - The London Metal Exchange (LME) copper only saw a minor decline of 0.73%, trading at $9,627.5 per ton, highlighting a divergence between the two markets [6]. Group 2: Tariff Announcement - The White House announced a 50% tariff on imported semi-finished copper products effective August 1, while refined cathode copper and scrap copper were unexpectedly exempted [4]. - This "categorical taxation" contrasts sharply with Trump's earlier statement on imposing a blanket 50% tariff on all imported copper, leading to market confusion and panic selling [5]. Group 3: Analyst Insights - Analysts described the tariff's impact as "earthquake-level," indicating severe consequences for those who had invested heavily in shipping copper to the U.S. only to find their goods unable to enter the market [6]. - The rapid convergence of price differences between COMEX and LME copper suggests potential oversupply issues in the U.S. market, which could lead to further downward pressure on copper prices [6].

Core Viewpoint - The U.S. government has announced a 50% tariff on various imported copper products, which has surprised the market and led to a significant drop in COMEX copper prices [2][4]. Group 1: Tariff Announcement - The U.S. will impose a 50% tariff on imported semi-finished copper products and copper-intensive derivatives starting August 1 [2]. - Copper input materials and scrap copper are exempt from these tariffs, indicating that the cost of copper imports may not increase [4]. Group 2: Market Reaction - Following the tariff announcement, COMEX copper prices plummeted over 18% on July 30, with the price difference between COMEX and LME copper narrowing sharply [2][5]. - The abnormal premium structure for U.S. copper has collapsed, reducing the incentive for traders to import copper from other regions [5]. Group 3: Future Implications - The U.S. copper import volume has nearly reached last year's total, and without price incentives, imports may be limited, potentially leading to re-exports [5]. - Trump has not ruled out the possibility of imposing tariffs on refined copper in the future, with a phased approach suggested for 2027 and 2028 [6]. - The U.S. administration is also taking measures to support the domestic copper industry, including requirements for domestic sales of high-quality scrap copper [6].

Core Viewpoint - The U.S. government has announced a 50% tariff on imported copper semi-finished products and high-copper-content derivatives starting August 1, excluding refined copper and major products from this tax, which contradicts market expectations [1][3][6]. Group 1: Tariff Announcement - President Trump signed an announcement on July 30, imposing a 50% tariff on imports of copper semi-finished products such as copper pipes, wires, rods, and sheets, as well as high-copper-content derivatives like fittings, cables, connectors, and electrical components [1][3]. - Refined copper and major products are excluded from the tariff, which was unexpected by the market, as there were anticipations that all imported refined metals would be taxed [1][3][6]. Group 2: Market Reaction - Following the announcement, copper futures on the New York Commodity Exchange experienced a significant drop, with prices falling over 18% at one point, ultimately closing at $4.63 per pound, down approximately 17% [3][5]. - The announcement has been described as unexpectedly disruptive to international markets, indicating a volatile response from traders [3][5]. Group 3: Historical Context - Earlier in the year, Trump hinted at potential copper tariffs, which led to a notable increase in U.S. copper prices compared to global markets, resulting in a surge of copper products entering the U.S. [5][6]. - On July 8, after announcing a 50% tariff on all imported copper, copper futures saw a record single-day increase of 17%, reaching $5.89 per pound, marking the largest single-day price increase since 1989 [5][6]. Group 4: Trade Flow Implications - The exclusion of refined copper from the tariff is expected to further disrupt global copper trade flows, with significant quantities of copper products already shipped to the U.S. potentially being re-exported [6].

Core Viewpoint - Goldman Sachs maintains its copper price forecast despite the unexpected decision by the Trump administration to exempt refined copper from import tariffs [1] Group 1: Tariff Announcement - On July 30, the White House announced a 50% universal tariff on imported semi-finished copper products and copper-intensive derivatives, effective August 1 [1] - President Trump had previously announced on July 9 that all copper imports to the U.S. would be subject to a 50% tariff starting August 1 [1] - The White House clarified that copper input materials (such as copper ore, concentrates, blister copper, cathodes, and anodes) and copper scrap are not subject to the "Section 232" or reciprocal tariffs [1] Group 2: Market Analysis - Goldman Sachs analysts predict that LME copper prices will drop to $9,550 per ton in August, followed by a rebound to $9,700 per ton by December [1] - Following the White House announcement, analysts expect that high U.S. cathode copper inventories will lead to an influx of cathode copper into U.S. LME warehouses, but large-scale re-exports of U.S. cathode copper are unlikely [1] Group 3: Government Focus - Analysts noted that despite the unexpected copper tariff policy, it indicates that the Trump administration remains focused on the security of copper supply [1] - The U.S. can now shift its attention to securing mineral deals overseas while gradually implementing tariff measures [1]

Core Points - Chile has announced that its cathode copper products will be exempt from tariffs, emphasizing its role in supporting U.S. industrial development [1][2] - The U.S. government, under President Trump, has imposed a 50% tariff on imported copper products starting August 1, which may significantly increase costs for U.S. manufacturers [1] - Chile is the largest copper producer globally, exporting over $5.6 billion worth of copper to the U.S. in 2024, accounting for 70% of U.S. copper imports [1] Group 1 - Chile's Finance Minister stated that the exemption from tariffs is beneficial for both Chile and U.S. industries, highlighting the importance of Chilean copper for U.S. industrial growth [1] - The U.S. administration views high copper import levels and global overcapacity as a threat to national security, but Chile argues that it enhances U.S. security as a reliable supplier [2] - Chile's exports primarily consist of cathode and refined copper products, with the remaining 30% of U.S. copper imports sourced from Mexico, Canada, and Peru [1]