Understanding the Market | Copper stocks continue to decline as market risk aversion sentiment rises; institutions expect short-term copper prices to be under pressure and fluctuate in consolidation
Copper stocks continue to decline. As of the time of writing, CMOC is down 4.21%, trading at HKD 14.8; JIANGXI COPPER is down 3.95%, trading at HKD 31.58; MMG is down 2.68%, trading at HKD 6.53; CHINFMINING is down 2.21%, trading at HKD 13.69. On the news front, there is intense competition between bulls and bears in copper prices. On the supply side, incidents such as the shutdown of Grasberg in Indonesia, earthquakes in the Democratic Republic of the Congo, and tremors at the Aifenghao mine continue to evolve. However, the international trade situation may be volatile, and the Federal Reserve's interest rate adjustment policy also carries uncertainty, which may cause some disturbances to copper prices. CITIC Construction Investment Futures released a research report stating that overall, due to the delay in the release of economic data caused by the U.S. government shutdown, market risk aversion has increased, and it is expected that copper prices will be under pressure and mainly fluctuate in the short term. Goldman Sachs pointed out that the short-term price upside for copper is limited to USD 11,000 per ton. Although they are optimistic about copper prices in the long term, they believe that the market will still maintain an oversupply in the short term, limiting the short-term price upside
According to Zhitong Finance APP, copper stocks continue to decline. As of the time of writing, Luoyang Molybdenum (03993) is down 4.21%, trading at HKD 14.8; Jiangxi Copper (00358) is down 3.95%, trading at HKD 31.58; MMG (01208) is down 2.68%, trading at HKD 6.53; and CHINFMINING (01258) is down 2.21%, trading at HKD 13.69.
On the news front, there is intense competition between bulls and bears in the copper market. On the supply side, incidents such as the shutdown of Indonesia's Grasberg, earthquakes in the Democratic Republic of the Congo, and tremors at the Aifenghao mine continue to unfold. However, the international trade situation may experience fluctuations, and the Federal Reserve's interest rate adjustment policy also carries uncertainties, which may cause some disturbances to copper prices.
CITIC Construction Investment Futures released a research report stating that overall, due to the delay in the release of economic data caused by the U.S. government shutdown, market risk aversion has increased. It is expected that copper prices will be under pressure and mainly fluctuate in the short term. Goldman Sachs pointed out that the short-term price upside for copper is limited to USD 11,000 per ton. Although they are optimistic about copper prices in the long term, they believe that the market will still maintain an oversupply in the short term, limiting the price upside
