CITIC Securities: The supply gap is expected to widen by 60%, and it is expected that $12,000 will become a new starting point for copper prices.

CITIC Securities research report pointed out that since mid-November, the inflection point of inventory has appeared, coupled with expectations of interest rate cuts and the fermentation of domestic production reduction, it is expected that the LME copper price will accelerate towards $12,000 per ton by the end of the year. Looking ahead to next year, the dual narratives of "copper hoarding in the United States" and "domestic production reduction" are expected to resonate, and the supply gap is expected to widen by 60%. It is expected that $12,000 will become a new starting point for copper prices. It is recommended to fully allocate the copper sector.