EB Securities: Overseas sulfuric acid supply shortage may have the biggest impact on global copper supply, continue to be optimistic about the rise in copper prices.

EB SECURITIES released a research report stating that global sulfur and sulfuric acid prices have risen significantly due to the conflict in the Middle East. According to SMM, sulfur prices in the Democratic Republic of Congo have reached $1500-2300 per ton, while sulfuric acid prices are at $1000-1400 per ton. If the Middle East conflict continues, a shortage of sulfuric acid overseas could have the biggest impact on global copper supply, potentially leading to a rise in copper prices. The report suggests investing in companies with a high share of domestic copper production and companies with low reliance on sulfuric acid. Key points from EB SECURITIES: - By 2025, sulfur production in five Middle Eastern countries will account for 24% of global production. - By 2025, the combined wet copper production in the Democratic Republic of Congo and Chile will account for 17% of global mineral copper production. - The cost of sulfuric acid in relation to copper prices has risen to 32%. - If China's sulfuric acid exports are restricted, it could impact Chile's wet copper production by 28,000 tons in 2025, representing 1.2% of global copper production. - A sulfuric acid shortage in the Democratic Republic of Congo could impact wet copper production by 159,000 tons in 2025, accounting for 6.8% of global mineral copper production. Risks include the recovery of sulfur supply in the Middle East and lower-than-expected demand.