Report Industry Investment Rating No relevant content provided. Core View of the Report The valuation of copper is slightly bearish with a neutral bias. The global manufacturing PMI has a neutral driving force, the short - term decline in copper concentrate processing fees is bullish, and the rise in the US dollar index is bearish. Geopolitical factors suppress risk appetite, while copper raw material supply remains tight. Although domestic smelting maintenance is decreasing marginally, downstream operating rates remain strong, and the short - term pressure on inventory accumulation in China is not significant. Copper prices are expected to fluctuate in the short term. The trading range for the main SHFE copper contract is expected to be between 84,800 - 87,500 yuan/ton, and for LME copper 3M, it is expected to be between 10,550 - 11,000 US dollars/ton [12]. Summary by Directory 1. Weekly Assessment and Strategy Recommendation - Supply: Spot processing fees for copper concentrates declined, and those for blister copper remained flat. Codelco's 2026 CIF South Korea electrolytic copper long - term contract offer increased by 245 US dollars/ton compared to 2025 [11]. - Inventory: The combined inventory of the three major exchanges increased by 38,000 tons, with SHFE inventory rising to 111,000 tons, LME inventory to 155,000 tons, and COMEX inventory to 362,000 tons. Shanghai bonded area inventory increased by 5,000 tons. The spot premium in Shanghai was 90 yuan/ton over futures, and the LME Cash/3M premium was 1.1 US dollars/ton [11]. - Imports and Exports: The loss on domestic electrolytic copper spot imports narrowed, and the Yangshan copper premium rebounded. In October 2025, China's refined copper imports were 323,000 tons, with net imports of 257,000 tons, a month - on - month decrease of 90,000 tons and a year - on - year decline of 31.6%. From January to October, cumulative imports were 3.225 million tons, and net imports were 2.676 million tons, a year - on - year decrease of 4.7% [11]. - Demand: The operating rate of domestic downstream refined copper rod enterprises increased, and spot transactions remained warm. The domestic refined - scrap copper price spread narrowed, reducing the substitution advantage of scrap copper, and the operating rate of recycled copper rod enterprises declined further [11]. 2. Futures and Spot Markets - Futures Prices: Copper prices fluctuated downward. The main SHFE copper contract fell 1.43% for the week, and LME copper fell 0.63% to 10,778 US dollars/ton [22]. - Spot Prices: The spot prices of electrolytic copper and copper products showed different degrees of change, and the price spreads also varied [24]. - Premiums and Discounts: The spot premium of copper in East China was 90 yuan/ton over futures. The LME Cash/3M premium first declined and then rose, reaching 1.1 US dollars/ton on Friday. The loss on domestic electrolytic copper spot imports continued to narrow, and the Yangshan copper premium (bill of lading) rebounded [27]. 3. Profit and Inventory - Smelting Profit: The spot TC for imported copper concentrates declined to - 42.3 US dollars/ton, and the price of sulfuric acid in East China increased, positively boosting copper smelting revenue [35]. - Import - Export Ratio: No specific information on the change trend is provided. - Import - Export Profit and Loss: The loss on copper spot imports narrowed [40]. - Inventory: The combined inventory of the three major exchanges increased by 38,000 tons, and Shanghai bonded area inventory increased by 5,000 tons. The increase in SHFE inventory came from Shanghai, and the decrease came from Guangdong and Jiangsu. The number of copper warehouse receipts decreased by 40 to 49,790 tons. The increase in LME inventory came from Asian warehouses, and European inventory decreased slightly. The proportion of cancelled warehouse receipts declined [43][46][49]. 4. Supply Side - Electrolytic Copper Monthly Output: According to SMM, China's refined copper output in October 2025 decreased by about 30,000 tons month - on - month, and it is expected to decline slightly in November. According to NBS data, domestic refined copper output in October was 1.204 million tons, a year - on - year increase of 8.9%, and the cumulative output from January to October was 12.295 million tons, a year - on - year increase of 9.7% [54]. - Import and Export Situation: In October 2025, China's copper ore imports were 2.451 million tons, a month - on - month decrease. From January to October, cumulative imports were 25.086 million tons, a year - on - year increase of 7.5%. Unwrought copper and copper products imports were 438,000 tons, a month - on - month decrease of 52,000 tons but a year - on - year increase of 2%. Anode copper imports were 55,000 tons, a month - on - month increase of 5,000 tons but a year - on - year decline of 8.6%. Refined copper imports were 323,000 tons, with net imports of 257,000 tons, a month - on - month decrease of 90,000 tons and a year - on - year decline of 31.6%. Refined copper exports were 66,000 tons, a month - on - month increase of 40,000 tons. The profit from domestic spot copper feed - processing exports narrowed. Recycled copper imports were 197,000 tons, a month - on - month increase of 13,000 tons and a year - on - year increase of 7.4%. From January to October, cumulative imports were 1.9 million tons, a year - on - year increase of 2.2% [57][60][63][69][72]. 5. Demand Side - Consumption Structure: China's official and Caixin manufacturing PMIs in October both weakened. The manufacturing prosperity of major overseas economies was divided, with improvements in the Eurozone, India, and the UK, and weakening in the US and Japan [79]. - Downstream Industry Output Data: In October, the year - on - year output of automobiles, color TVs, and power generation equipment increased, while that of refrigerators, air conditioners, washing machines, freezers, and AC motors decreased. From January to October, the cumulative output of power generation equipment, air conditioners, washing machines, refrigerators, and AC motors increased, while that of color TVs and freezers decreased [82]. - Real Estate Data: Domestic real estate data in October continued to be weak, with new construction, construction, sales, and completion all declining year - on - year. The decline in construction remained the same, while the decline in new construction, sales, and completion widened. The National Housing Climate Index continued to decline [85]. - Downstream Enterprise Operating Rates: In October, the operating rates of refined copper rod, enameled wire, wire and cable, copper tube, brass rod, and copper strip enterprises declined, while the operating rate of copper foil enterprises increased. It is expected that the operating rates of these enterprises will rebound or increase slightly in November [88][91][94][97]. - Refined - Scrap Price Spread: The domestic refined - scrap copper price spread narrowed, reaching 2,675 yuan/ton on Friday [100]. 6. Capital Side - SHFE Copper Positions: The total SHFE copper positions decreased by 71,216 to 1,034,950 lots (bilateral), and the positions of the nearby 2512 contract were 249,184 lots (bilateral) [105]. - Foreign Fund Positions: As of October 7, CFTC funds maintained a net long position, with a net long ratio of 13.3%. The proportion of long positions of LME investment funds stabilized as of November 14 [108].

Group 1: Copper Price Management - The company utilizes hedging tools to manage copper price fluctuations and has established a hedging management system to mitigate risks [2] - The copper concentrate processing fee is expected to remain low in the short term, based on the 2025 long-term contract pricing [3] Group 2: Research and Development Focus - Future R&D priorities include developing high-end, high-value-added products in the copper strip and foil sector [3] - The company aims to accelerate the digital transformation of traditional industries, implementing a phased approach to smart upgrades [3] Group 3: Environmental Initiatives - The company invested CNY 140 million in various environmental protection measures in 2024, including tailings pond management [3] - Future strategies will focus on comprehensive pollution control, adhering to principles of source reduction, process control, and end-of-pipe treatment [3] Group 4: Shareholder Returns - The company has disclosed a shareholder return plan for 2023-2025, considering industry conditions and operational performance for profit distribution [3] Group 5: Market Trends and Governance - Copper prices are influenced by global economic trends, supply-demand dynamics, monetary policy, and geopolitical risks [4] - The company plans to optimize its governance structure and internal control systems in 2025 to enhance operational efficiency [4]