Changes in Hong Kong stocks | Non-ferrous sectors collectively fall, geopolitical conflict amplifies non-ferrous fluctuations, Grasberg resumes production and suppresses copper prices

The Zhitong Finance App learned that the non-ferrous sector declined collectively. As of press release, Ganfeng Lithium (01772) fell 4.79% to HK$36.54; China Aluminum (02600) fell 3.84% to HK$8.01; Jiangxi Copper (00358) fell 3.65% to HK$33.82; and Luoyang Molybdenum (03993) fell 3.33% to HK$16.28.

According to the news, the Federal Reserve is about to begin a two-day July interest rate meeting. Furthermore, the US-Iran conflict is still facing choices in the direction of escalation or downgrade. Orient Securities said that in the context of the geographical conflict, there are colored fluctuations or significant amplification. The Federal Reserve may discuss interest rates in July or give more clear monetary policy path guidelines, but considering the decline in precious metals, the actual decline in precious metals may also be limited until the Fed clearly announces a decision to raise interest rates.

Furthermore, Indonesia's Grasberg mining area will resume production, which is expected to be close to full capacity by the end of 2027. Bank of China International released a research report saying that the resumption of production in Grasberg is a medium-term supply pressure, which will continue to release marginal growth over the next 18 months, weakening the supply shortage narrative, and forming a phased suppression of copper prices; however, winter disturbances in Chile are a regular seasonal event. Caserones are limited in size, and the main mining area in the north has not been affected. It is more short-term emotional support rather than structural shock. Judging comprehensively, short-term copper prices fluctuated in a range supported by disturbances, and the medium-term upward space was suppressed by Grasberg's increase.