Movement Alert|Jiangxi Copper Falls 3.63% in Regular Trading, Fed Rate Hike Expectations and Weak Demand Continue to Weigh on Copper Sector

Market Focus05-26

On May 26, Jiangxi Copper fell 3.63% in regular trading, trading at HK$35.5/share, with trading volume of approximately HK$144 million. The decline extends the broader copper sector selloff driven by persistent macroeconomic headwinds.

On the news front, elevated U.S. April PPI data — headline at 6% YoY and core at 5.2% YoY, both well above expectations — has fueled rising Fed rate hike expectations. The CME FedWatch Tool now shows a 42.5% probability of a 25-basis-point hike in December, up from 39.1% the prior week, strengthening the dollar and pressuring copper prices. Meanwhile, global copper inventories across three major exchanges remain elevated, and downstream procurement is limited to just-needed restocking, constraining near-term upside.

Within the Copper sector, the overall sector weakened notably. Among peers, Jinxun Resource fell 13.06%, China Daye Nonferrous fell 5.66%, China Nonferrous Mining fell 0.5%, while Jinchuan International and CMRU were flat. Analysts note that while supply-side tightness supports copper prices at elevated levels in the medium-to-long term, the short-term outlook remains one of range-bound volatility amid the tug-of-war between industrial and financial attributes.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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