CITIC Securities: Copper prices are expected to benefit from supply and demand improvements in both the short and medium to long term.

CITIC Securities Research Report pointed out that against the background of consecutive major disturbances in existing projects and bottlenecks in new projects, the production of major copper mining companies worldwide in Q3 decreased by nearly 5% year-on-year, and it is expected to continue to contract in Q4. A shortage of raw materials and potential "anti-enclosure" measures will help to shrink the supply of refined copper in China in Q4, coupled with stable demand. Domestic inventories are expected to gradually decrease, while next year's supply shortage and steady demand will help to widen the global supply gap of refined copper by 50%. The LME copper price is expected to demonstrate upward resilience above $10,000/ton. It is recommended to seize the opportunity to allocate resources to the copper sector.