Core Insights - The industrial metal sector, particularly copper and aluminum, is experiencing strong performance as gold and silver prices stabilize, driven by supply-demand dynamics and geopolitical risks [2][3] Group 1: Copper Market - Copper prices have surged, with LME copper futures reaching a historical high of $11,200 per ton, marking a 25% increase this year [3] - Factors contributing to the rise in copper prices include supply constraints from overseas mines, regional mismatches in inventory and demand due to U.S. tariffs, and increased consumption driven by AI data centers [4] - Analysts predict that copper prices may remain strong due to tight supply and demand balance, despite potential short-term fluctuations [6] Group 2: Aluminum Market - Aluminum prices are also on the rise, with LME aluminum futures hovering around $2,900 per ton, supported by ongoing supply challenges and strong demand from the manufacturing sector [3][5] - The relationship between copper and aluminum prices is significant, with increased copper prices leading to higher aluminum demand as a substitute material [5] - Analysts expect that aluminum demand will grow, with projections indicating a 2.3% increase in global demand by 2026, driven by manufacturing recovery and new industrial applications [6][7] Group 3: Market Outlook - There is a divergence in market expectations regarding future copper prices, with some analysts suggesting a potential pullback due to lagging downstream demand [6] - The overall macroeconomic environment, including the Federal Reserve's monetary policy, is expected to influence commodity prices positively [7] - Despite some pessimism regarding aluminum demand in 2026, forecasts remain optimistic, anticipating growth in both domestic and overseas markets [6][7]