Non-ferrous Metals Stocks Under Pressure in Hong Kong Market

Stock News05-18 14:54

Non-ferrous metals stocks in Hong Kong experienced collective pressure. As of the time of writing, LINGBAO GOLD (03330) fell 5.95% to HK$18.65; MMG (01208) declined 4.08% to HK$9.18; JIANGXI COPPER (00358) dropped 3.46% to HK$35.72; CHALCO (02600) decreased 3.32% to HK$10.19; and CMOC (03993) fell 2.42% to HK$17.91.

Market sentiment was influenced by a sharp rise in energy prices driven by Middle East conflicts, coupled with the U.S. April Producer Price Index (PPI) significantly exceeding expectations, marking the largest increase in over three years. This led to a subsequent jump in U.S. Treasury yields, with market expectations for a Federal Reserve rate hike significantly increasing. According to the CME FedWatch Tool, the market currently estimates the probability of a 25-basis-point Fed rate hike in December at close to 40%, up sharply from just 13.6% a week ago.

Analysts at Orient Securities suggest that considering U.S. debt issues, the actual implementation of rate hikes after Warsh's appointment may face significant resistance, and there could be expectations for liquidity repair around the time of the June FOMC meeting. Regarding industrial metals, as prices have recovered to high levels, the market may gradually approach a seasonal transition point between peak and off-peak periods. Inventory drawdown rates for various metals have slowed, which could lead to periodic price volatility. However, considering supply disruptions for some metals and strong demand from sectors like power grids and semiconductors, price support may remain robust.

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