Understanding the Market | Copper stocks fell across the board as the dollar performed strongly, putting pressure on copper prices. Institutions say that demand expectations remain the core of copper price pricing

Zhitong
2024.12.20 06:13
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Copper stocks fell across the board. As of the time of publication, MMG dropped 3.15% to HKD 2.46; CMOC fell 2.91% to HKD 5.33; CHINFMINING decreased 2.14% to HKD 5.02; and ZIJIN MINING declined 1.95% to HKD 14.08. In terms of news, the Federal Reserve is expected to cut interest rates by 25bps at its December 2024 meeting. CITIC Securities predicts that the Federal Reserve will likely pause rate cuts at the next meeting to observe, and clearer guidance may not be provided until the March meeting. Baicheng Futures pointed out that the Federal Reserve's hawkish stance on rate cuts in 2025 has led to an increase in the US dollar index from 107 to around 108, putting pressure on copper prices. GF Futures noted that under the backdrop of fully anticipated copper supply patterns, macro demand expectations remain the core factor anchoring copper prices. The uncertainty of the macro environment in 2025 will exacerbate disturbances to copper prices, with a core focus on the overseas rate cut process, the progress of Trump's tariff policy, the scale of China's incremental policy, and the effectiveness of policy implementation after entering the release period

According to Zhitong Finance APP, copper stocks fell across the board. As of the time of publication, MMG (01208) fell by 3.15%, trading at HKD 2.46; CMOC (03993) fell by 2.91%, trading at HKD 5.33; CHINFMINING (01258) fell by 2.14%, trading at HKD 5.02; ZIJIN MINING (02899) fell by 1.95%, trading at HKD 14.08.

On the news front, the Federal Reserve is expected to cut interest rates by 25bps at its December 2024 meeting. CITIC Securities predicts that the Federal Reserve will likely pause interest rate cuts at the next meeting to observe, and clearer guidance may not be provided until the March meeting. Baocheng Futures pointed out that the Federal Reserve's hawkish stance on interest rate cuts in 2025 has caused the US dollar index to rise from 107 to around 108, putting pressure on copper prices.

Guangfa Futures noted that under the fully anticipated copper supply pattern, the macro demand expectations remain the core factor anchoring copper prices. The uncertainty of the macro environment in 2025 will exacerbate disturbances to copper prices, with a core focus on the overseas interest rate cut process, the progress of Trump's tariff policy, the scale of China's incremental policy, and the landing effects after entering the policy effect release period