CMOC's stock price soared 5.18% during intraday trading on Tuesday, 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 both domestically and internationally, with prices in China approaching 1,400 yuan per ton. Hydrometallurgy, the primary copper smelting process used in Africa, is highly dependent on sulfuric acid supply, and regions like the Democratic Republic of Congo rely on sulfur imported from the Middle East for nearly 80% of their sulfuric acid needs.

Adding to the supply pressure, China plans to halt sulfuric acid exports starting in May, exacerbating supply risks for hydrometallurgical copper in key production regions. On the demand side, performance has exceeded expectations with the operating rate for refined copper rod plants reaching 75.06% in March, and domestic social inventories that built up during the Spring Festival have been largely depleted. With these supply constraints and strong demand fundamentals, both copper prices and copper mining stocks like CMOC are positioned for significant upward potential.