Copper stocks are leading the declines, with China Nonferrous Mining Corporation Ltd (01258) falling 4.03% to HK$12.16, Jiangxi Copper Company Ltd (00358) dropping 3.69% to HK$27.68, MMG Ltd (01208) declining 3.56% to HK$6.765, and China Molybdenum Co Ltd (03993) slipping 3.46% to HK$12.29.
On the news front, the market had previously anticipated that the US would announce the results of its electrolytic copper import tariff policy by the end of September, but as of mid-October, the policy remains in a pending state. Analysts at Natixis have warned that trades betting on tariffs have already created a bubble in the copper market, and if the possibility of tariffs is ruled out, the bubble could burst quickly. Macquarie stated that under such circumstances, copper prices could fall toward US$10,000 per tonne.
It is worth noting that on October 13, the striking Centinela copper mine restarted voluntary mediation; on October 14, BHP Group Ltd reached a preliminary agreement with Escondida to avoid a strike at the major copper mine. BOC International pointed out that the extreme scenario of the world's largest copper mine and a core mine simultaneously facing disruptions was quickly resolved within the same week, and the supply disruption premium previously priced in faces concentrated unwinding.
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