According to recent reports, copper stocks have collectively surged. As of publication, <00661>CDAYENONFER is up 10% at HKD 0.099; <03993>CMOC is up 7.28% at HKD 17.38; <00358>JIANGXI COPPER has gained 4.29% to reach HKD 35.04; and <02899>ZIJIN MINING is also up 4.29%, trading at HKD 35.04. On the news front, US-China trade discussions are underway in Kuala Lumpur, Malaysia. Li Chenggang stated that a preliminary consensus has been reached on several key trade issues. According to a report from Zhengxin Futures, the recommencement of talks between the US and China has slightly alleviated tariff pressures. The US government remains in a shutdown, and employment data has not been released. Although Powell's dovish stance has guided interest rate cut expectations, the period of macroeconomic disturbances is not yet over. There are still no updates on the Grasberg copper mine's recovery, with disruptions in copper supply remaining a concern and operating conditions for smelting profits being unfavorable. The pathway from tight copper supply to reduced smelting capacities is fraught with challenges, making downstream consumption the central variable; currently, traditional peak-season consumption lags behind last year. According to a report from China Merchants Securities, the acceptance of copper prices by downstream buyers is gradually increasing, and improvements in procurement have been noted this week. The second 90-day exemption period between the US and China is set to conclude soon, highlighting the importance of tariff negotiations in shaping macroeconomic sentiment and copper prices. Codelco plans to raise the copper surcharge for the European market to USD 345 per tonne in 2026, marking a historical high and reflecting market concerns about tight copper supply next year. We maintain a favorable outlook on copper prices in the medium to long term, as sector valuations are currently at historically low levels, suggesting an adjustment opportunity for buying.