Hong Kong stocks concept tracking | Strong demand for AI data centers, the world's largest copper producer Chile warns of supply tightening (with concept stocks).

Analysts from the ANZ Bank's Economics and Market Research department said in a commentary that the world's largest copper-producing country Chile has warned of tightening supply. The analysts stated that Chile also expects an increase in demand generated by energy transition and grid construction, which could provide support for copper prices. However, these analysts also mentioned that the Chilean Copper Commission Cochilco pointed out that geopolitical tensions and U.S. tariffs still pose downside risks. During the early Asian trading session, copper prices rose. The London Metal Exchange's 3-month copper contract increased by 1.0% to $9,366.00 per ton. According to a recent report released by BHP, in the second half of last year, the company's copper production increased by 10% year-on-year, with production in the Escondida mining area in northern Chile increasing by 22%, reaching a new high in the past decade. The company predicts that due to the strong demand for copper from AI data centers, copper demand will increase by 70% by 2050 compared to 2021. Copper, as a key material for data centers, is not only used for power supply systems but also for cooling systems and connecting processors. Huayuan Securities released a research report stating that mining capital expenditure affects long-term supply trends, and the increase in copper mine production from 2025-2027 is expected to be mainly influenced by capital expenditure from 2020-2022, with capital expenditure decreasing from 2019 and gradually increasing year by year. It is expected that copper mines will still be in the process of increasing production but at a decreasing rate. In the long term, the supply peak may be around 2028-2029 (with the recent peak in capital expenditure being in 2023-2024), and the intensity of production growth is lower than the previous supply cycle (peak in 2012 capital expenditure). As the shortage at the mining end gradually transmits to the metal end and the growth rate of recycled copper smelting decreases, the copper industry as a whole remains in a tight balance. It is expected that the supply-demand balance will be 170,000, 70,000, 160,000, and 260,000 tons for 2024-2027 respectively. With the consensus on the shortage of ore, the price center is expected to rise. Hong Kong-listed companies related to copper mines: CMOC Group Limited(03993), Zijin Mining Group(02899), JIANGXI COPPER(00358), MMG(01208), CHINFMINING(01258).