HK Stock Market Move | CHI SILVER GP (00815) opened over 6% higher, energy shortages will impact Peru's mining industry, global copper and silver supply may face significant contraction risks.

CHI SILVER GP (00815) opened more than 6% higher, rising 6.74% to 0.475 Hong Kong dollars, with a turnover of 282,200 Hong Kong dollars at the time of publication. On the news front, on May 12th, according to reports from the global market, the National Oil Company of Peru issued a warning last month that due to the soaring international oil prices caused by the Iran war and the impact of delayed internal restructuring, the company will face serious risks of fuel production reduction or even shutdown if there is no external capital injection. Analysts at Guoxin Futures stated that this week, resource-rich Peru officially issued an energy crisis emergency decree, authorizing the National Oil Company to raise a $2 billion loan to ensure energy supply. The core of this crisis is the explosion of the Camisea natural gas pipeline, which has led to restrictions on industrial natural gas quotas and tightness in power supply. Analysts at Guoxin Futures pointed out that Peru is one of the world's top three producers and exporters of copper and silver, with Peruvian copper and silver production accounting for over 10% of global production. Silver is the precious metal most directly impacted by the events in Peru. The country's silver is mostly associated with copper mines, and energy shortages will simultaneously hit copper and silver production. Currently, silver is already in a tight balance of supply and demand and exchange stocks are low, so any disruptions on the supply side will be greatly magnified.