The recent commodity market has been extremely hot. On December 26, Shanghai copper futures surged past 99,000 yuan/ton, hitting a new historical high and just one step away from the 100,000 yuan mark. At the same time, international gold prices also fluctuated at high levels. The two precious metals and industrial metals are moving in sync, completely changing the investment logic along the industry chain.

**Triple Drivers Behind Copper Price Rise**

First, demand side. The new energy industry has become the biggest engine for copper consumption, with photovoltaic, wind power, and new energy vehicles accounting for 28% of copper demand. Even more impressive, each new energy vehicle uses about four times the copper of traditional fuel vehicles, directly driving an increase of over 2 million tons in copper consumption. Think about what this means: in the global transition to new energy, copper demand is no longer just a bonus but a necessity.

On the supply side, new copper mine capacity has been limited, with production growth unable to keep pace with demand expansion, leading to a widening supply-demand gap. Moreover, from a macro perspective, global easing policies and a weakening dollar are strengthening copper’s financial attributes, with institutional funds entering the market and pushing prices higher. Leading printed circuit board (PCB) companies raised prices for the second time in December. Driven by the AI wave, the PCB industry is expected to grow at an average annual rate of 5.2% from 2024 to 2029, providing long-term support for upstream copper processing enterprises.

**How 16 Companies Benefit**

Resource giants directly benefit. Jiangxi Copper (600362), as the largest domestic copper company, has over 20 million tons of copper reserves and a cathode copper capacity of 2.1 million tons. When copper prices rise, their smelting and processing profits jump, with a 10%+ increase in three trading days after a price surge on December 26. Zijin Mining (601899) is a dual gold and copper player, with gold reserves exceeding 7,000 tons, and net profit of 37.864 billion yuan in the first three quarters, up 55% year-over-year, fully benefiting from multi-metal layout and rising prices.

Luoyang Molybdenum (603993), as a global multi-metal giant, produced 543,400 tons of copper in the first three quarters, up 14% year-over-year. The rise in prices of copper, cobalt, molybdenum, and other commodities boosted net profit by 72.61%, with overseas resource deployment well established. Yunnan Copper (000878) and Tongling Nonferrous (000630), two integrated copper smelting companies in Southwest and Central China, also released performance elasticity under the dual drive of copper prices and demand from new energy.

Processing companies stabilize profits through pricing and hedging. Electrical alloy (300697), a leader in busbars, locks in profits through a "raw materials + processing fee" pricing model and hedging strategies. Rising copper prices have actually expanded revenue. Jingyi Co., Ltd. (002295) holds a 12% market share of precision copper tubes, which have entered the top inverter supply chain. Upgrades in AI and PCB open new growth opportunities.

Hailiang Co., Ltd. (002203), a global leader in copper processing, produces over 1 million tons of copper processed materials annually. Its nickel-plated copper foil for solid-state batteries has gained recognition from top cell manufacturers. Chujian New Material (002171) produces precision copper strips used in 5G communications, and its shaped copper conductors are used in marine engineering. In the first three quarters, net profit increased by 2,089%, with copper prices and high-end manufacturing resonating.

In the precious metals sector, Shandong Gold (600547), a domestic gold leader, produces over 40 tons of gold annually. Rising gold prices directly increase profit per ton of ore, and overseas expansion is accelerating. Chifeng Gold (600988) has over 50% of its mines overseas, with all-in costs below $1,200/oz, giving it a clear cost advantage. Rising gold prices directly boost performance. China National Gold (600489), backed by a central enterprise, has ample gold reserves and stable production growth, with stock price gains exceeding 100% this year.

Some diversified players are also sharing the gains. Xiaocheng Technology (300139) is involved in gold, photovoltaics, integrated circuits, and African copper mines, planning to produce 60,000 tons of ore in the second half of 2025, driven by both copper and gold prices. Jiaozuo Wanfang (000612), although known for aluminum, achieved a net profit of 906 million yuan in the first three quarters, up 71% year-over-year, and plans to acquire millions of tons of alumina capacity to complete the full industry chain, with copper and aluminum demand highly overlapping. Shengtun Mining (600711) is releasing capacity from overseas copper-cobalt mines, and the combination of copper prices and new energy demand is driving performance growth. Silver Mine (601212) has a multi-metal layout of copper, silver, and gold, and also holds a 13% stake in the world's largest platinum-palladium mine, benefiting from dual positive factors.

**Risks to Watch**

Of course, not everything is entirely positive. Copper prices may experience short-term corrections. If demand from new energy falls short of expectations, it could impact long-term demand. Policy changes may also cause disruptions. It’s important to stay alert to these changes and monitor market developments dynamically.

Overall, the current synchronized strength of copper and gold prices is creating multi-level benefits along the industry chain, from resource extraction to deep processing. Resource giants enjoy direct benefits from commodity price increases, processing companies stabilize profits through mature pricing and hedging mechanisms, and companies in the new energy supply chain are gaining growth momentum from expanding demand. Precious metals benefit from safe-haven demand and central bank gold purchases. This multi-mainline resonance indeed brings significant performance elasticity to listed companies along the industry chain.