Understanding the Market | Copper stocks continue to decline due to oversupply and weak demand, limiting the upside potential of copper prices

Copper stocks continue to decline. As of the time of publication, MMG fell by 7.19% to HKD 2.84; Jiangxi Copper fell by 6.39% to HKD 14.64; CHINFMINING fell by 5.95% to HKD 5.69; and China Gold International fell by 5.93% to HKD 50.8. On the news front, LME copper fell by 1.06% to $9664 per ton overnight; the main Shanghai copper contract fell by 0.95% to 78610 yuan per ton. Institutions believe that overseas interest rate cut expectations have raised optimism, but the fundamental oversupply and weak demand continue to suppress the upside potential of copper prices, with an expectation of copper prices fluctuating at low levels. Southwest Futures pointed out that in July, the number of smelting plant maintenance is relatively low, and electrolytic copper production will remain above one million tons, coupled with some imported copper inflow, the supply side pressure remains significant. Last week, social inventories of electrolytic copper decreased by 13,100 tons. The weakening of the US dollar is somewhat beneficial to copper prices, but at present, domestic copper consumption is slightly weak, with significant inventory pressure, restraining the upward momentum of copper prices