Concept tracking of Hong Kong stocks | Chile's national copper industry raises annual premiums. Institutions are optimistic about the upward cycle of copper mining companies (with concept stocks).

Chilean producer Codelco significantly increased its annual premium, and a weakened US dollar boosted the attractiveness of metals, causing copper prices to rise. Copper futures prices are approaching $10,900 per ton, with a 0.4% increase on Tuesday. Codelco proposed a premium of $335 per ton to supply the copper needed for the 2026 annual contracts to some buyers, calculated on top of the London Metal Exchange prices. The company offered a premium of $350 per ton to some Chinese buyers for their copper supply in the 2026 annual contracts, based on London Metal Exchange prices. This move highlights concerns in the market about a surge in goods being shipped to the US or possibly leading to supply shortages in other regions. China Securities Co., Ltd. research report stated that since touching a historical high of $11,200 per ton on October 29 due to global supply concerns, copper prices have fallen by 3%, driven by the failure of future AI-driven electricity consumption growth to materialize in the spot market. The lack of new drivers is the cause of the short-term decline in copper prices. Global visible copper inventories increased to 780,000 tons, up 47,000 tons compared to the previous period, and up 240,000 tons from the same period last year, reflecting some suppression of consumption due to high copper prices. With limited increases in copper mining, a positive outlook for electricity consumption, and a global imbalance between copper supply and demand that is expected to widen over time, the center of gravity for copper prices is moving upward. Currently, copper has priced in disruptions in supply from Grasberg and Teck, with weak consumption leading to a short-term decline in copper prices. Furthermore, according to CME "Fed Watch", there is a 71% probability of a 25 basis point rate cut by the Fed in December. If a rate cut occurs, liquidity could boost copper prices and resume the upward trend. If rates remain unchanged, copper prices are likely to fall below 85K to 83K, providing a good opportunity to increase equity positions. In terms of equity, copper-related stocks are measuring 15 to 16 times PE for a copper price of 80K in 2025, and 12 to 13 times for a copper price of 85K in 2026. It is recommended to actively engage in copper investments when Shanghai copper volatility decreases to a low point. Related Hong Kong stocks of copper mining companies: CMOC Group Limited (03993), Zijin Mining Group (02899), MMG (01208), JIANGXI COPPER (00358), CHINFMINING (01258)