Copper-related stocks opened trading in negative territory across the board. At the time of writing, China Nonferrous Mining Industry Co., Ltd. (01258) was down 12.01%, trading at HK$12.82. Jiangxi Copper Company Limited (00358) fell 4.34% to HK$33.98. MMG Limited (01208) declined by 4.32%, reaching HK$8.40. Zijin Mining Group Co., Ltd. (02899) dropped 2.91% to HK$32.00.

The market movement follows the release of U.S. employment data. The seasonally adjusted non-farm payrolls for May increased by 172,000, significantly surpassing the expected 85,000. Furthermore, the combined job gains for March and April were revised up by 93,000, resulting in the strongest three-month employment growth in over two years.

Market pricing now reflects expectations for a Federal Reserve interest rate hike by January next year, with the probability of a December rate increase rising to 63% from a previous 48%.

Analysis suggests that the high price of copper continues to negatively impact physical consumption. Despite retreating from recent peaks, copper prices remain at historically elevated levels, leading to weak purchasing interest from downstream enterprises, which are only buying to meet essential needs.

Looking ahead, it is anticipated that the ongoing tightening of existing liquidity will increasingly become a key factor constraining copper prices. Simultaneously, expectations for interest rate hikes are suppressing the demand outlook for global industrial commodities. Consequently, the upward momentum for copper prices appears limited, with the overall trend likely to be volatile with a downward bias.