1. Report Industry Investment Rating - The investment rating for the copper sector is "oscillating bullish" [1] 2. Core View of the Report - The core driver for copper prices breaking through historical highs is the concern about potential US tariffs on refined copper, which has led to a shift in global copper liquidity towards the US. Statements from the Fed Chair have also re - priced inflation and policy independence, benefiting metals with strong financial attributes like copper [1] 3. Summary by Relevant Catalogs Market Quotes - The night - session closing price of the main Shanghai copper contract CU2603 was 106,900 yuan/ton, a 4.38% increase from the previous night - session closing price. The second - main contract CU2604 closed at 107,170 yuan/ton, with a 4.34% increase. As of 06:00, the COMEX copper main contract HGH26E closed at 6.282 US dollars/pound (equivalent to 96,197 yuan/ton after exchange - rate conversion), up 4.75% from the previous trading day. The LME copper main contract CA03ME closed at 13,705 US dollars/ton (equivalent to 95,195 yuan/ton after exchange - rate conversion), with a 4.73% increase [1] Important Information - Southern Copper's CFO expects the company's copper production to be 91.14 million tons in 2026, slightly over 90 million tons in 2027, lower than the 95.43 million tons in 2025 due to declining ore grades at major Peruvian mines [1] - Zambia's copper production in 2025 was about 89.03 million tons, an 8% increase from 82.55 million tons in 2024, but it failed to reach the 100 - million - ton target [1] - Deutsche Bank predicts that copper prices will reach a peak of 13,000 US dollars per ton in the second quarter and then decline in the second half of the year as production at major mines may increase [1] - A CITIC Securities research report states that the upward trend of copper - clad laminate prices is clear, with a potential gross - margin increase of over 10 percentage points, and is optimistic about the performance and stock - price elasticity of related leading companies [1] Market Logic - The fear of US tariffs on refined copper has caused a change in global copper liquidity. LME copper inventory in Europe has dropped from nearly 7 million tons to less than 1.4 million tons since April, while COMEX copper inventory has risen from less than 100,000 short tons to over 570,000 tons since April. Fed Chair Powell's statements have led to a re - pricing of inflation and policy independence, benefiting metals with strong financial attributes [1] Trading Strategy - There is currently no trading strategy provided [1]

Group 1 - The domestic commodity futures market opened with most contracts rising, with notable increases in gold (over 7%), silver (over 4%), and fuel (nearly 3%) [1] - The industrial non-ferrous ETF WanJia (560860) saw a significant increase of 4.03%, reaching a historical high, with a trading volume of 290 million [1] - The ETF has attracted substantial capital inflows, with a total of over 6.9 billion yuan in net inflows over the past five days, and over 46 billion yuan in the last 20 days [1] Group 2 - Federal Reserve Chairman Jerome Powell indicated that inflation pressures are primarily due to tariffs rather than demand factors, leading to a significant rise in gold prices, which surpassed 5400 USD [3] - The London Metal Exchange (LME) saw most base metals rise, with tin increasing by 3.52% to 56,795 USD/ton, aluminum by 1.59% to 3,263.5 USD/ton, and copper by 0.74% to 13,120 USD/ton [3] - The metal industry is entering a weak supply cycle, with global mining supply expected to maintain strong rigidity until 2028, while demand is anticipated to increase due to green energy transitions and new production capabilities [3] Group 3 - The industrial non-ferrous ETF WanJia (560860) closely tracks the CSI Industrial Non-Ferrous Metals Theme Index, covering strategic resources such as copper, aluminum, and rare earths [4] - Investors can access this ETF through linked classes (A class: 018489; C class: 018490) to capitalize on cyclical and policy-driven opportunities [4]