[Click eStock] "ETF to Watch When Copper Prices Rise: COPX"

Hi Investment & Securities analyzed that copper prices have recently reached their highest level in 11 months, indicating that it is time to pay attention to copper-related exchange-traded funds (ETFs).

Researcher Park Yoon-chul of Hi Investment & Securities explained, "Copper prices reached $8,927 per ton, the highest since April last year based on the LME exchange," adding, "Copper, which had been moving within a range since July last year, has been rising continuously since early February."

He continued, "Chinese smelters are currently facing a structural crisis," noting, "Since last year, the closure of major mines in Australia, Panama, and other locations has led to a shortage of copper concentrate, which naturally resulted in a decline in treatment charges (TC)."

He emphasized, "As of the 8th, copper treatment charges have been hitting new lows daily at 11.2," and added, "It was a natural step for smelters, which turned to losses due to increased margin pressure, to decide to cut production."

Researcher Park forecasted, "While the supply shortage continues, copper inventory levels are also declining daily," and stated, "Considering that copper is a key material for power production related to artificial intelligence (AI) and infrastructure, as well as a demand that is likely to increase during economic recovery, the absolute supply shortage is not an issue that can be easily resolved in the near term."

He advised, "Supply and demand disruptions soon translate into price momentum," and added, "If you are looking for alternatives while the recent AI momentum is taking a brief pause, copper is also an asset worth paying attention to."

Representative domestic and international copper-related ETFs include KODEX Copper Futures, TIGER Copper Physical, CPER, and COPX. Researcher Park noted, "Unlike other ETFs, COPX invests in mining companies rather than copper spot/futures," and said, "It has advantages in terms of assets under management (AUM), trading volume, and management fees."