The main Shanghai copper futures contract on the Shanghai Futures Exchange hit 112,200 yuan per ton intraday, with a year-to-date gain of 14.28%. The copper rally is driven by supply contraction, low visible inventories and improved macro expectations. Major global copper mine projects fall short of scheduled output, mine disruptions occur frequently, and worldwide visible copper stocks remain low, resulting in tight physical supply overseas.

Copper is widely regarded as the “metal barometer” for the global economy, used extensively in power grids, photovoltaic power, energy storage and new energy vehicles. Long-term expansion of new energy industries creates steady incremental demand. Traders also price in global stockpiling activities triggered by potential US tariff policies. Some nations speed up copper stock accumulation and further reduce circulating inventories.

Domestic copper mining enterprises delivered strong results in the first half of the year, and leading copper resource firms recorded sharp profit growth. High copper prices bring mixed impacts: upstream resource companies enjoy improved profits, while downstream cable and new energy component manufacturers face rising costs and squeezed processing margins. Institutions warn volatility will rise after the sharp rally. If global manufacturing demand weakens, industrial metal prices face correction risks. Investors will monitor global copper mine output, LME inventory shifts and order data within China’s new energy sector.