Shares of Jiangxi Copper surged 5.15% during the morning session, leading gains among copper-related stocks.

The rally is primarily driven by a sharp contraction in sulfuric acid supply from the Middle East, caused by disruptions to shipping through the Strait of Hormuz. This has triggered a rapid increase in sulfuric acid prices, which is critical for the hydrometallurgical process used in copper smelting, particularly in regions like Africa. The Democratic Republic of Congo, for instance, relies on sulfur imported from the Middle East for nearly 80% of its sulfuric acid needs.

Further supporting the bullish sentiment are continued tightness in copper concentrate supply, deeply negative treatment and refining charges, and China's plan to halt sulfuric acid exports starting in May, which exacerbates supply risks. On the demand side, performance has exceeded expectations with high operating rates for refined copper rod plants and largely depleted domestic inventories, positioning copper prices and related stocks for significant upward potential.