HK Stock Market Move | The copper industry stocks continue recent declines. Inventories at three major exchanges remain high. The increase in oil prices is causing expectations of a recession, putting pressure on copper prices.

The copper industry stocks continued to decline recently. As of the time of writing, CMOC Group Limited (03993) fell by 4.76% to 19.62 Hong Kong dollars; MMG (01208) fell by 3.48% to 8.6 Hong Kong dollars; Zijin Mining Group (02899) fell by 1.31% to 39.24 Hong Kong dollars; CHINFMINING (01258) fell by 1.14% to 12.96 Hong Kong dollars. On the news front, according to a report from the Shanghai Metal Market on March 9th, the London Metal Exchange data showed that copper inventories accelerated accumulation last week, with the latest inventory level reaching 284,325 tons, hitting a high of over a year. The latest data from the Shanghai Futures Exchange showed that in the week of March 6th, Shanghai copper inventories continued to accumulate, with weekly inventory increasing by 8.59% to 425,145 tons, reaching a new high. International copper inventories increased by 36 tons to 20,772 tons. Last week, New York copper inventories initially rose and then fell, with the latest inventory level at 597,938 tons. Huaxin Securities released a research report stating that orders for electrolytic copper rods from resumed enterprises have generally increased significantly, while the operation of recycled copper rod enterprises is relatively weak, weakening the substitution of refined copper by scrap copper, and copper prices still have support. China Youzheng Securities, on the other hand, stated that the impact of the Middle East on copper supply is not significant, therefore the expectation of a decline caused by the rise in oil prices is putting pressure on copper prices, leading to a differentiation in prices between copper and aluminum. The bank pointed out that the rapid increase in downstream operations indicates a gradual acceptance of copper prices above 100,000 yuan/ton.