Report Industry Investment Rating - Not provided Core Viewpoints - The decline in copper production in Zambia's second quarter poses risks to the goal of increasing copper production to 1 million tons this year. The domestic copper smelting plant's maintenance capacity may decrease month - on - month in August, and the domestic electrolytic copper social inventory has decreased month - on - month. The inflation rebound at the US port end reduces the expected number of Fed rate cuts, but the decrease in scrap copper anode plates and domestic electrolytic copper social inventory may cause the Shanghai copper price to fluctuate. It is recommended that investors wait and see [1][2][4] Summary by Related Contents Copper Market Data - On August 15, 2025, the closing price of the active contract of Shanghai copper futures was 79,060, with an increase of 110 compared to the previous day. The trading volume was 50,116 lots, a decrease of 1,618 lots. The open interest was 152,557 lots, an increase of 216 lots. The inventory was 24,560 tons, an increase of 126 tons [2] - The average price of SMM 1 electrolytic copper was 79,180, a decrease of 255 compared to the previous day. The Shanghai copper basis difference was 120, a decrease of 365 [2] - The LME 3 - month copper futures closing price (electronic trading) was 9,760, a decrease of 17 compared to the previous day. The total inventory of registered and cancelled warrants was 0, a decrease of 155,800 [2] - The closing price of the active contract of COMEX copper futures was 4.489, a decrease of 0.01 compared to the previous day. The total inventory weight was 267,195, an increase of 400 [2] Zambia Copper Production - Zambia is the second - largest copper producer in Africa. In 2025, the first - quarter copper production was about 224,000 tons. The copper production in the first six months was 439,644 tons. Assuming no revision in the first - quarter production, the second - quarter production was about 215,644 tons, a month - on - month decrease of about 4% [2] - Four producers, Sino Metals Leach, First Quantum Minerals, Mimbula, and Sino Xinyuan, affected the second - quarter production. Sino Metals Leach was forced to close due to tailings dam failure and acid leakage [2] - Zambia produced about 820,000 tons of copper last year. The first - half production increased by about 18% year - on - year. To reach the 1 - million - ton target this year, the second - half production needs to increase by about 27% [2] Industry Projects - Jiangxi Heli Environmental Protection Technology Co., Ltd. (formerly Jiangxi Jinhui Copper Industry Co., Ltd.) plans to invest 1.9766065 billion yuan in the industrial park of Qianshan County, Jiangxi to relocate and upgrade the existing project, building an annual 200,000 - ton recycled electrolytic copper project [3] - On August 14, 2025, the environmental impact assessment of Jiangxi Hefan Environmental Protection Technology Co., Ltd.'s annual 200,000 - ton recycled electrolytic copper project was publicly announced for acceptance, with a publicity period from August 14 to August 27 [5] - Jiangxi Linghao New Material Technology Co., Ltd. plans to build a project in De'an County for annual processing of 500,000 tons of steelmaking furnace charge and 200,000 tons of copper - aluminum recycling, with a total investment of 200 million yuan and environmental protection investment of 1.31 million yuan [3] Copper Product Industry - The daily processing fee of refined copper rods for power and enameled wires in East China increased compared to last week, leading to an increase (decrease) in the capacity utilization rate of China's refined copper rods (recycled copper rods). The raw material (finished product) inventory of refined copper rod enterprises decreased (increased) compared to last week [4] - The capacity utilization rate of copper product industries may change. For example, the capacity utilization rate of copper foil in some fields may increase, while that of copper wires and cables, copper enameled wires, and copper tubes may decrease [4] Investment Strategy - It is recommended that investors wait and see. Pay attention to the support and pressure levels of Shanghai copper, London copper, and US copper [4]

Group 1: Report Summary - The report is a daily review of copper on August 11, 2025, focusing on the copper market, including price, inventory, and industry trends [1] Group 2: Market Data Shanghai Copper Futures - On August 8, 2025, the closing price of the active contract of Shanghai copper futures was 78,490, up 30 from the previous day; the trading volume was 42,906 lots, up 196; the open interest was 156,892 lots, down 709; the inventory was 21,272 tons, up 1,127 [2] - The basis of Shanghai copper was 40, unchanged from the previous day; the spot premium or discount in Guangzhou was -40, up 5; in North China was -120, unchanged; in East China was -5, up 10 [2] - The spread between the near - month and the first - continuous contract of Shanghai copper was -30, down 20; between the first - continuous and the second - continuous contract was 20, up 30; between the second - continuous and the first - continuous contract was 20, down 10 [2] London Copper - The closing price of the LME 3 - month copper futures (electronic trading) on August 8, 2025, was 9,768, up 97.5 from the previous day [2] - The total inventory of registered and cancelled warrants was 0, down 155,850 from the previous day [2] - The spread of the LME copper futures 0 - 3 months contract was -69.55, down 3.92; the 3 - 15 months contract was -141.49, down 1.49 [2] COMEX Copper - The closing price of the active contract of COMEX copper futures on August 8, 2025, was 4.485, up 0.07 from the previous day [2] - The total inventory was 264,140, up 1,036 from the previous day [2] Group 3: Industry News - Chile's Codelco received approval from the labor department to resume operations in the unaffected areas of its El Teniente copper mine [2] - The daily processing fee of refined copper rods for power and enameled wire in East China increased compared to last week, leading to a decline in the capacity utilization rate of China's refined copper rods (recycled copper rods) [2] - The capacity utilization rate of China's copper wire and cable increased, while the raw material and finished - product inventories decreased [2] - The order volume and capacity utilization rate of China's copper enameled wire decreased and increased respectively, and the raw material and finished - product inventory days decreased [2] - The capacity utilization rate and production of China's copper strip increased, and the raw material and finished - product inventory days decreased [2] - The capacity utilization rate of China's copper tubes increased, and the raw material and finished - product inventory days increased and decreased respectively [2] - The capacity utilization rate of China's brass rods increased, and the raw material and finished - product inventory days decreased [2] - Due to the easing of Sino - US tariffs and the traditional off - season, the capacity utilization rate, production, import volume, and export volume of domestic copper products enterprises in August may decline [2] Group 4: Investment Strategy - Due to the weakening US job market, rising expectations of Fed rate cuts, the weekly operation capacity of the domestic copper processing industry, and the weekly decline in domestic electrolytic copper social inventory, the price of Shanghai copper may rebound [2] - Investors are advised to lightly test long positions on the main contract on dips, with support and resistance levels at 77,000 - 78,000 and 80,000 - 81,000 for Shanghai copper, 9,300 - 9,500 and 10,000 - 10,200 for London copper, and 4.0 - 4.2 and 4.6 - 5.0 for US copper [2]

Report Summary 1. Report Industry Investment Rating No relevant information provided. 2. Core View of the Report The weakening US job market has increased expectations of a Fed rate cut. However, the traditional domestic consumption off - season has suppressed downstream demand, and the inventory of electrolytic copper at home and abroad fluctuates, suggesting that the Shanghai copper price may still have room to fall. It is recommended that investors hold their previous short positions cautiously and pay attention to the support and resistance levels of Shanghai copper, London copper, and US copper [2]. 3. Summary by Related Catalogs Market Data - **Shanghai Copper Futures**: On August 5, 2025, the closing price of the active contract was 78,580, up 250 from the previous day; the trading volume was 42,792 lots, a decrease of 19,597 lots; the open interest was 159,866 lots, a decrease of 3,692 lots; the inventory was 18,767 tons, a decrease of 1,581 tons. The SMM 1 electrolytic copper average price was 78,615, up 195 [2]. - **London Copper**: The LME 3 - month copper futures closing price (electronic trading) on August 5, 2025, was 9,634.5, down 74 from the previous day; the total inventory of registered and cancelled warrants was 0, a decrease of 153,850; the LME copper futures 0 - 3 - month contract spread was - 67.32, down 14.59; the 3 - 15 - month contract spread was - 142.61, down 3.38 [2]. - **COMEX Copper**: On August 5, 2025, the closing price of the active copper futures contract was 4.3795, down 0.06; the total inventory weight was 262,190, an increase of 2,509 [2]. News and Information - **Company News**: Zangge Mining's Julong Copper Mine Phase II project is expected to be completed and put into production by the end of 2025, with an annual copper output of about 300,000 - 350,000 tons. Codelco, the world's largest copper miner, has stopped the mining operation of its flagship El Teniente copper mine due to an accident and postponed its quarterly earnings release [2]. - **Trade News**: Affected by US tariffs on copper semi - finished products, domestic copper processing exports to the US are under pressure. A copper tube enterprise's goods arriving in the US on August 5 were subject to an additional 50% tariff, with a comprehensive tariff of 97% [2]. - **Industry News**: Japan's Mitsubishi Materials may partially shut down its refinery due to falling copper concentrate processing and smelting fees (TC/RCs), while Chinese smelters maintain record - high production [2]. Industry Operation - The daily processing fee of refined copper rods for power and enameled wire in East China has increased compared to last week, leading to an increase in the operating rate of China's refined copper (recycled copper rod) production capacity. The raw material and finished - product inventory of refined copper rod enterprises has increased, while that of recycled copper rod enterprises has decreased. The operating rate of China's copper wire and cable production capacity has decreased, and the raw material and finished - product inventory has increased. The operating rate and order volume of China's copper enameled wire have increased, and the raw material and finished - product inventory days have decreased. The operating rate and production volume of China's copper strip have increased, and the raw material and finished - product inventory days have decreased. The operating rate of China's copper tube has decreased, and the raw material and finished - product inventory days have remained flat. The operating rate of China's brass rod has decreased, and the raw material and finished - product inventory days have decreased [2]. - In August, the operating rate of domestic copper processing enterprises may be affected by the easing of Sino - US tariffs and the traditional consumption off - season. The operating rates of electrolytic copper rod, copper strip, and brass rod may increase month - on - month, while those of recycled copper rod, copper wire and cable, copper enameled wire, copper foil, and copper tube may decrease [2]. Trading Strategy It is recommended that investors hold their previous short positions cautiously and pay attention to the support and resistance levels: Shanghai copper at 74,000 - 76,000 and 80,000 - 81,000; London copper at 9,300 - 9,500 and 10,000 - 10,200; US copper at 4.0 - 4.2 and 4.6 - 5.0 [2].

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoint of the Report - The expansion of the US fiscal deficit and the Fed's potential interest rate cuts, along with disruptions in production or transportation at multiple overseas copper smelters, are countered by the easing of Sino - US tariffs and the traditional off - season for consumption. With the global electrolytic copper inventory starting to accumulate, the upward space for copper prices may be limited. It is recommended that investors hold their previous long positions cautiously and pay attention to the support and resistance levels of Shanghai copper, London copper, and US copper [5]. 3. Summary by Relevant Content 3.1 Market Data - **Shanghai Copper Futures Active Contract**: On July 3, 2025, the closing price was 80,560, up 20 from the previous day; the trading volume was 83,386 lots, down 18,572; the open interest was 224,672 lots, up 1,550; the inventory was 24,103 tons, down 994 [2]. - **Shanghai Copper Basis and Spot Premium/Discount**: The average price of SMM 1 electrolytic copper was 80,980, down 10; the Shanghai copper basis was 420, down 30; the spot premium/discount in different regions showed various changes, such as a 20 - point decrease in Guangzhou and East China [2]. - **London Copper**: The closing price of LME 3 - month copper futures (electronic trading) was 9,951.5, down 58.5; the total inventory of registered and cancelled warrants decreased by 94,325; the LME copper futures 0 - 3 - month contract spread was 87.61, down 8.59 [2]. - **COMEX Copper**: The closing price of the active copper futures contract was 5.196, up 0.08; the total inventory was 213,171, up 1,962 [2]. 3.2 Important News - **Macro - news**: The US Senate - version "Six - Pretty" bill was passed, planning to raise the debt ceiling to $5 trillion, with potential fiscal deficit expansion. The Trump administration's tariff policy affects consumption, and the US ADP employment number in a certain month was - 33,000, lower than expected and the previous value, reducing the probability of the Fed not cutting interest rates in July, with expected rate - cut months being September, October, or December [3]. - **Industry - specific News**: Some copper mines and smelters faced disruptions. For example, Las Bambas and Constancia had copper concentrate transportation interruptions; several smelters, including Pasar in the Philippines, Rosh Pinah in Namibia, and Altonorte in Chile, had production suspensions. Meanwhile, some new projects were progressing, such as the Jiangxi Copper Hongyuan's projects and other copper - related projects in China [4]. 3.3 Downstream Market - Some copper rod enterprises plan to cut production to reduce inventory in July. The capacity utilization rates of various copper products, including refined copper rods, copper wire and cable, copper foil, and copper pipes, are expected to decline in July, except for the potentially rising capacity utilization rate of electrolytic copper rod production [5]. 3.4 Trading Strategy - Due to the factors mentioned above, it is recommended that investors hold their previous long positions cautiously and pay attention to the support and resistance levels of Shanghai copper (76,000 - 78,000 and 81,000 - 83,000), London copper (9,300 - 9,600 and 9,900 - 10,200), and US copper (4.6 - 4.9 and 5.2 - 5.5) [5].

Financial Data and Key Metrics Changes - In Q4 2023, earnings per diluted share were $21.62, with net income of $66.1 million and full year net income of $372.4 million [8] - Q4 gross profit margin was 21.5%, down from 23.3% in Q3 2023, while full year gross profit margin was 25.5% [8][10] - Cash on hand at the end of December 2023 was $560 million, a decrease from $730.6 million at the end of December 2022 [8] - Capital expenditures for 2023 totaled $164.5 million, with share repurchases amounting to $85.1 million in Q4 and $460.2 million for the full year [9][12] Business Line Data and Key Metrics Changes - Copper pounds shipped in Q4 2023 increased by 5.9% compared to Q3 2023 and by 18.8% compared to Q4 2022, marking a record volume quarter [4][10] - Aluminum wire represented 9.9% of net sales in Q4 2023, with volumes effectively flat compared to the prior year quarter [11] Market Data and Key Metrics Changes - Demand for copper wire and cable products remained strong in 2023, with a 21% increase in copper pounds shipped compared to 2019 levels [4] - The company experienced increased demand from various sectors, including data centers and renewable energy [6] Company Strategy and Development Direction - The company is focused on improving service models and efficiency levels to reduce costs and increase capacity, which is expected to enhance gross margins compared to pre-COVID levels [4][5] - Investments in vertical integration and new facilities, such as the XLPE compounding facility, are aimed at meeting future demand and enhancing competitiveness [7][13] Management's Comments on Operating Environment and Future Outlook - Management noted that the current federal legislation providing funds for infrastructure should bolster demand for products [7] - The company remains confident in its ability to navigate challenges and maintain strong performance due to its unique business model and operational agility [15][16] Other Important Information - The company has returned nearly $785 million in capital to shareholders through share repurchases and dividends since Q1 2020 [12] - The XLPE facility is expected to provide cost savings and benefits starting in the second half of 2024 as it moves into the optimization phase [44][46] Q&A Session Summary Question: What product lines drove the increased volumes in Q4? - Management indicated that the commercial market was strong, with healthy increases in sectors like hotels, government buildings, and data centers [19][20] Question: How is market share evolving? - Management acknowledged that their service level has improved, allowing them to capture market share despite competitors being private [25][26] Question: What are the expectations for gross margins in 2024? - Management stated that gross margins are influenced by copper prices, and while there has been a gradual abatement, investments made in recent years are expected to pay dividends [30][31] Question: How is capacity utilization currently? - Management confirmed that there is still excess capacity available to meet demand, and they have built flexibility into their operations [34][36] Question: What are the biggest remaining bottlenecks? - Labor remains a challenge, but improvements have been noted in hiring and onboarding processes [54][56] Question: What is the outlook for aluminum product lines? - Management noted that while aluminum is more volatile, it remains profitable, and the new XLPE plant will provide more control over this product line [62][65] Question: Can you differentiate between maintenance and growth CapEx? - Management indicated that maintenance CapEx includes significant investments in new machinery, with a consistent range of $40 million to $60 million annually [66][68] Question: What was the LIFO impact in the quarter? - The LIFO impact in Q4 was a pickup of about $2 million, which is significant given the rising environment for copper prices [70][72]