Understanding the Market | Copper stocks fell broadly in early trading as Trump threatened to impose tariffs on copper; institutions say U.S. tariffs exacerbate metal price volatility
Copper stocks fell broadly in early trading, with CMOC down 6.04% and ZIJIN MINING down 4.35%. Trump threatened to impose a 50% tariff on imported copper, causing New York copper futures prices to soar by 17%. Analysts pointed out that the U.S. has stockpiled about 400,000 tons of copper inventory, which may cushion the impact of tariffs in the short term, but the implementation of tariffs will be favorable for copper prices. Metal price volatility is expected to increase, supply remains tight, and geopolitical risks may exacerbate uncertainty. In the second half of the year, the policy environment is expected to be loose, and industrial metal prices may run strong
According to Zhitong Finance APP, copper stocks fell broadly in early trading. As of the time of writing, Luoyang Molybdenum (03993) fell 6.04% to HKD 7.93; Zijin Mining (02899) fell 4.35% to HKD 19.8; China Nonferrous Mining (01258) fell 2.76% to HKD 7.04; Jiangxi Copper (00358) fell 1.66% to HKD 15.36.
In terms of news, according to CCTV News, on the 8th local time, U.S. President Trump stated that he is considering imposing a 50% additional tax on copper imported into the United States, causing New York copper futures prices to soar by 17%, marking the highest single-day increase. According to Morgan Stanley's analysis, the U.S. has stockpiled about 400,000 tons of "extra" copper inventory, equivalent to about six months of imports, which will buffer the direct impact of tariffs in the short term. Furthermore, the implementation of tariffs will be favorable for COMEX copper prices, while the end of U.S. stockpiling may put pressure on LME copper prices.
Cathay Securities previously pointed out that the suspension period for U.S. reciprocal tariffs is about to end, and attention should be paid to changes in overseas copper inventory and the impact of U.S. tariffs on demand expectations for industrial products such as copper and aluminum. Metal price fluctuations may intensify. From an annual perspective, the supply side of most industrial metals remains relatively tight. At the same time, geopolitical risks may further exacerbate uncertainties on the supply side. In addition, the domestic and international policy environment is expected to maintain a relatively loose tone in the second half of the year. Against this backdrop, industrial metal prices may run strong, providing opportunities for positioning amid sector fluctuations
