Understanding the Market | Copper Stocks Lead the Gains as Inventory Continues to Decrease and Interest Rate Hike Expectations Cool, Copper Prices Approach Historical Highs
Most copper stocks rose, as of the time of writing, China Daye Nonferrous Metals rose 8.62% to HKD 0.126; MMG rose 8.2% to HKD 9.105; CMOC rose 4.88% to HKD 17.84; China Gold International rose 4.75% to HKD 224.8; Jiangxi Copper rose 4.15% to HKD 37.64. On the news front, copper prices continued to be strong, with LME copper futures at one point rising over 1.4% to nearly USD 14,400 per ton, just a step away from the historical high of USD 14,527.5 per ton. It is worth noting that the siphoning of copper in the U.S. continues, London copper inventories are continuously depleting, and domestic copper inventory levels are at historical lows. In addition, the U.S. July CPI met expectations, while retail data fell short, leading to a cooling of Federal Reserve interest rate hike expectations. Huayuan Securities believes that with copper inventories at historical low levels and the backdrop of cooling Federal Reserve interest rate hike expectations, copper prices are likely to break upward. In the medium to long term, insufficient capital expenditure in copper mines and frequent supply-side disturbances may shift the copper supply-demand balance from tight equilibrium to shortage, with copper prices expected to rise in the medium to long term
According to Zhitong Finance APP, most copper stocks rose. As of the time of writing, China Daye Nonferrous Metals (00661) rose 8.62% to HKD 0.126; MMG (01208) rose 8.2% to HKD 9.105; CMOC (03993) rose 4.88% to HKD 17.84; China Gold International (02099) rose 4.75% to HKD 224.8; Jiangxi Copper (00358) rose 4.15% to HKD 37.64.
On the news front, copper prices continued to be strong, with LME copper rising more than 1.4% during the day, approaching USD 14,400 per ton, just a step away from the historical high of USD 14,527.5 per ton. It is noteworthy that the siphoning of copper in the U.S. continues, with London copper inventories continuing to deplete, and domestic copper inventory levels at historical lows. In addition, the U.S. July CPI met expectations, while retail data fell short of expectations, cooling the Federal Reserve's interest rate hike expectations. Huayuan Securities believes that with copper inventories at historical low levels and the backdrop of cooling Federal Reserve interest rate hike expectations, copper prices are expected to break upward. In the medium to long term, insufficient capital expenditure in copper mines and frequent supply-side disturbances may shift the copper supply-demand pattern from a tight balance to a shortage, with copper prices expected to rise in the medium to long term
