HK Stock Market Move | Copper stocks continue to be active amid resonant expectations of tariffs and mismatches in supply and demand. LME copper prices have risen beyond $14,700, reaching a new high.

Copper stocks continue to be active. As of the time of writing, CHINFMINING (01258) has risen by 2.91%, trading at HKD 17.68; JIANGXI COPPER (00358) is up by 2.14%, at HKD 39.22; and MMG (01208) has increased by 1.09%, trading at HKD 9.725. On the news front, three-month copper futures prices on the London Metal Exchange reached both intraday and closing historical highs on Tuesday, peaking at USD 14,779.0 per ton and closing at USD 14,728.0 per ton, a rise of 1.51%. Year-to-date, prices have increased by over 18%. Market analysts believe that the ongoing surge in copper prices is driven by a reduction in mine supply and a sustained increase in copper demand from industries such as data centers. Additionally, tariff expectations have led to an influx of refined copper into the United States, resulting in severe supply-demand tension. Although the U.S. Department of Commerce was supposed to submit recommendations to the White House two months ago, the market is still digesting the possibility of increased tariffs. Xinda Futures points out that in the short term, copper concentrate supply is tight, combined with low inventory and expectations for the peak season in September and October, there is significant price elasticity and strong support for copper prices. After October, as some mines gradually resume, domestic demand slightly weakens, and U.S. stockpiling demand decreases marginally, the support for copper prices may weaken. In the long term, insufficient capital expenditure in global copper mines and declining ore grades mean that supply elasticity will remain low in the next 1-2 years, while emerging demands from the power grid, energy storage, new energy, and supporting infrastructure, as well as AI data centers, are still in an expansion cycle.