HK Stock Market Move | CDAYENONFER(00661) has risen nearly 20%, Jiang Nengke plans to close Canada's largest copper smelter, and domestic smelting is constantly benefiting from the reversal.

CDAYENONFER (00661) rose by nearly 20%, as of the time of writing, it rose by 19.8%, reaching 0.121 Hong Kong dollars, with a turnover of 23.624 million Hong Kong dollars. On the news front, Glencore plans to close its Horne copper smelter in Canada, mainly due to the high cost of environmental upgrades and strict regulations. It is reported that the global smelting industry's profits have been declining this year, due to tight supply of copper concentrate putting pressure on processing fees. Smelters typically charge processing and refining fees to turn copper concentrate into refined copper. However, since last year, the spot market processing fees have turned negative, meaning that smelters have to pay to purchase concentrate instead of getting paid. It is worth noting that there have been frequent positive developments in the domestic smelting sector to prevent overcapacity. On October 30, at the CSPT third quarter general manager meeting, consensus was reached on the user BM system, rejecting the use of average pricing by traders and smelters, preventing malicious competition, and initiating a blacklist system. On October 29, the China Nonferrous Metals Industry Association pointed out that, drawing on the experience of electrolytic aluminum, capacity ceilings are being considered for bulk metals such as copper, lead, and zinc. Orient notes that with the expected implementation of measures to prevent overcapacity in the midstream smelting sector, the growth rate of smelting capacity may slow down, with potential for improvement in mid-term smelting fees.