HK Stock Market Move | Copper stocks plummet, LME copper inventory reaches highest level since 2019, Copper prices are suppressed by a strong US dollar index.

In terms of the decline in the copper industry stocks, as of the time of drafting, Zijin Mining Group (02899) fell by 6.75%, to 34.82 Hong Kong dollars; CMOC Group Limited (03993) fell by 5.54%, to 17.57 Hong Kong dollars; MMG (01208) fell by 5.21%, to 8.01 Hong Kong dollars. On the news front, the London Metal Exchange (LME) latest data shows a significant increase in copper inventories, with a single-week surge of 18,775 tons, reaching a new high since 2019. In addition, although domestic inventories have reached a turning point, the absolute level is still high. Caida Futures stated that the strength of demand recovery still needs to be verified. Changjiang Futures pointed out that the continuing spread of the US-Iran war has led to a continuous rise in crude oil prices, significantly increasing global inflation expectations. This has lowered market expectations of a US Federal Reserve interest rate cut this year, and a stronger US dollar index has suppressed copper prices. The continuing concerns about inflation due to the US-Iran war have affected the market's expectation of a Fed rate cut, combined with high inventories, overall putting pressure on copper prices.