Investment Rating - The industry investment rating is "Positive" and maintained [10]. Core Viewpoints - Copper prices have been leading the industrial metals market, with LME copper expected to surpass $11,000 per ton in May 2024, marking a new high since 2006. From 2000 to July 3, 2025, copper prices have increased by 431%, compared to 58% for aluminum, 319% for lead, and 124% for zinc [2][4][16]. Summary by Sections Long-term Perspective: Metal Prices - Supply and Demand Analysis Framework - The ideal scenario for commodity prices is when demand grows while supply is constrained. Demand determines the industry's ceiling, while supply influences profitability. If demand continues to grow, weak supply responses lead to stronger price performance. Copper is characterized by growing demand and constrained supply [5][20][42]. - Demand is assessed through three dimensions: volume, growth rate, and structure. Volume indicates the industry's ceiling, growth rate reflects industry potential, and structure indicates demand stability. A more diversified demand structure leads to greater stability [5][42]. - Supply is evaluated based on reserves, grade, and mine dispersion. Reserves indicate resource scarcity, grade reflects extraction difficulty, and mine dispersion affects the slope of the cost curve. Generally, lower reserves and grades lead to higher price levels due to increased development costs [5][42][43]. Copper: Growing Demand, Constrained Supply - Copper exhibits the most stable upward demand trend among industrial metals. It is primarily used as a conductor, with over 70% of copper products serving this role. The global electrification trend supports copper demand, aligning closely with global electricity consumption and GDP growth rates [6][21][28]. - On the supply side, copper resources are relatively scarce, with reserves only about one-tenth of iron ore and bauxite. The average grade of copper is lower than that of aluminum, and the industry has the highest mine dispersion, leading to a steep cost curve. New copper mines take over five years to develop, making supply responses to demand changes slow [7][29][31]. Investment Strategy: Focus on Quality Copper Companies - Given the long-term upward trend in copper prices, despite short-term uncertainties in the U.S. economy, it is recommended to invest in copper companies with resource advantages and strong growth expectations. Companies such as Zijin Mining, Luoyang Molybdenum, and Cangge Mining are highlighted as potential investment targets [8][47].