HK Stock Market Move | Copper industry stocks collectively rise, copper supply and demand relationship is tightening, overseas interest rate cut expectations still dominate copper prices.

The copper industry stocks collectively rose, as of press time, CHINFMINING (01258) rose 4.89% to HK$14.15; MMG (01208) rose 3.54% to HK$6.72; JIANGXI COPPER (00358) rose 3.2% to HK$32.92; ZIJIN MINING (02899) rose 2.68% to HK$35.2. On the news front, recently, there was a mudslide accident at the Grasberg copper mine in Indonesia, and the US mining giant Freeport-McMoRan, which operates the mine, announced that it has exempted its supply obligations based on the "force majeure" clause in the contract. As the world's second-largest copper mine in terms of production, the restricted supply of Grasberg has a huge impact on the global copper market. Following the accident, Citigroup adjusted its forecast for global copper mine supply, expecting global copper mine production to reach 23.15 million tons by 2025, a year-on-year increase of 0.1%; and to reach 23.46 million tons by 2026, a year-on-year increase of 1.3%. These figures have been revised down from previous forecasts. On the macro level, following Federal Reserve Chairman Powell's hint of another rate cut this month, copper prices rebounded. A report from COFCO Futures stated that, based on recent factors affecting copper prices, overseas rate cut expectations continue to dominate. The labor market data is still the main factor influencing expectations of a rate cut in the US, but due to the US government shutdown delaying data release, the focus is on potential fluctuations in expectations after the data is released. For copper prices, it is more important to consider the nature of the rate cut, as long as there is no risk of recession, copper prices are unlikely to experience a significant decline.