Recently, many people have been asking which copper stocks are worth paying attention to. I’ve organized my observations over this period to help everyone clarify their thinking.

Speaking of copper concept stocks, you first need to understand the logic of the copper industry chain. Copper from upstream mining, midstream smelting, to downstream applications, companies at different links react completely differently to copper prices. Upstream mining companies profit when copper prices rise, and lose when they fall. But downstream processing plants are the opposite; rising copper prices can erode their profits. Understanding this logic makes stock selection much easier.

At the beginning of this year, copper prices hit a record high, mainly for clear reasons: large-scale AI data center construction drives power infrastructure upgrades, coupled with a structural shortage of global copper mine supply. Traditional mining regions like Chile and Peru face declining ore grades and geopolitical restrictions, causing new mine production to lag behind demand growth. This results in a limited increase in refined copper supply globally by 2026.

How to choose pure copper concept stocks upstream? Freeport-McMoRan (FCX) is the most pure choice, with nearly 40% of its business in the U.S., directly benefiting from U.S. government AI grid subsidies. Their Grasberg mine in Indonesia, after maintenance last year, is expected to increase copper output by 300 million pounds this year. Southern Copper (SCCO), with the largest copper reserves globally, operates in Peru and Mexico. Rio Tinto (RIO) and BHP, as global mining giants, control Escondida, the world’s largest copper mine, with obvious cost advantages. BHP also raised its copper production target to 1.9-2.0 million tons earlier this year, with a cash dividend payout ratio over 50%, making it a stable choice for institutional investors.

Glencore is somewhat special; it’s not a pure copper company but controls large amounts of copper, cobalt, and nickel mines. In an environment where EV battery technology is stabilizing, it can offer more stable profit combinations than single-miner companies. There are even rumors that Rio Tinto intends to acquire Glencore; if true, it would create a super giant controlling nearly 10% of global copper production.

What about copper stocks in the Taiwan stock market? First Copper (2009) is Taiwan’s largest copper foil processing plant. When copper prices soared past $14,000 per ton earlier this year, their low-cost raw material inventories translated into huge gross profit margins. Quarterly EPS is expected to see explosive growth. Huaring (1608) benefits from Taiwan’s power grid upgrade peak period, with ultra-high voltage cable orders maintaining over NT$8 billion, with nearly full capacity utilization. As Taiwan’s AI data centers gradually start operation, the demand for stable power transmission is surging.

Honestly, the trend of copper concept stocks depends on copper prices, which in turn reflect the global economic cycle. The increase in January was already significant, and market sentiment shows signs of overheating. In the short term, watch out for sharp fluctuations and correction risks. It’s recommended to focus on Q1 and Q2 earnings reports, observing whether processing plants can effectively pass on costs, and whether miners’ capacity guidance is raised again.

The long-term outlook is optimistic, but in the short term, it’s not advisable to chase high blindly. If you want to invest in copper-related assets, directly buying stocks or copper concept ETF is convenient in both the U.S. and Taiwan markets. The key is to grasp the global economic cycle—actively deploying during expansion periods, and raising caution when recession expectations emerge.

In summary, companies with upstream mining rights or advanced electronic copper foil technology are worth paying close attention to. But remember, copper is still a commodity, inevitably affected by global economic cycles, so risk management is very important.