HK Stock Market Move | Copper stocks fall, Shanghai copper inventories hit nearly ten-year high, institutions say destocking efforts during peak season may be less than expected.

Copper industry stocks fell sharply, as of the end of the drafting, MMG (01208) fell by 8.07% to 10.14 Hong Kong dollars; JIANGXI COPPER (00358) fell by 6.16% to 42.98 Hong Kong dollars; CMOC Group Limited (03993) fell by 5% to 23.54 Hong Kong dollars; CHINFMINING (01258) fell by 3.97% to 14.03 Hong Kong dollars. On the news front, data from the London Metal Exchange shows that London copper inventories continued to rise last week, with the latest inventory level at 253,700 tons, reaching a nearly one-year high. The latest data released by the Shanghai Futures Exchange shows that in the week of February 27, copper inventories in Shanghai accumulated significantly, with weekly inventory increasing by 43.69% to 391,529 tons, reaching a nearly ten-year high. Jianxin Futures released a research report stating that domestic refined copper production in January hit a historical high, and production in February fell slightly due to the number of days, with production expected to rise again in March. The pressure of concentrated maintenance in smelters may become apparent from April onwards, which will still suppress prices in the short term on the supply side. As the demand side transitions from the off-season to the peak season, the market has expectations for the traditional peak season, but with current copper prices at historical highs, spot prices continue to be at a discount, and the monthly price difference widens, the constraint of high copper prices on consumption may continue. After the holiday, domestic social inventories hit a five-year high, and it is expected that the effort to reduce inventories in the peak season may not meet expectations.