HK Stock Market Move | Non-ferrous metal stocks continue to decline, the expectation of interest rate hikes heats up, suppressing the space for price increases in non-ferrous metals. Institutions point out that short-term demand for copper and aluminum is weak.

Non-ferrous metal stocks continue to decline. As of the time of writing, MMG (01208) fell 5.41% to HK$9.79; JIANGXI COPPER (00358) fell 4.82% to HK$37.5; CHINFMINING (01258) fell 4.45% to HK$1.17; Aluminum Corporation Of China (02600) fell 4.29% to HK$10.92. On the news front, the US PPI rose 6% year-on-year in April, reaching the highest level since December 2022, with core PPI rising 5.2% year-on-year, both well above market expectations. Energy and transportation costs are both rising, with service industry inflation hitting a four-year high. The unexpected "explosion" of PPI inflation has raised expectations of a Fed rate hike. Guosen Futures pointed out that copper prices continue to strengthen, approaching historical highs, with resistance above likely to gradually appear. Huaxin Securities pointed out that high copper prices have suppressed purchasing willingness, with the market still primarily focused on demand for urgent restocking, expecting prices to fluctuate mainly. As for aluminum, downstream demand is gradually entering the off-season, with slightly weaker downstream demand, and weekly operating rates for downstream industries slightly declining this week. Overall, there is strong supply and weak demand, with aluminum prices expected to fluctuate weakly in the short term.