Copper-related stocks were among the biggest decliners in the Hong Kong market. At the time of writing, ZIJIN MINING (02899) fell 6.75% to HK$34.82, CMOC (03993) dropped 5.54% to HK$17.57, and MMG (01208) declined 5.21% to HK$8.01. The downturn follows data from the London Metal Exchange (LME) showing a significant increase in copper inventories, which surged by 18,775 tons in a single week, bringing total stockpiles to their highest level since 2019. Although domestic inventories have recently shown signs of turning lower, they remain elevated in absolute terms. Cinda Futures noted that the strength of the demand recovery still needs to be verified. Changjiang Futures pointed out that ongoing geopolitical tensions involving the U.S., Israel, and Iran have driven crude oil prices higher, significantly increasing global inflation expectations. This has reduced market expectations for a Federal Reserve interest rate cut within the year, leading to a stronger U.S. dollar index, which in turn has put downward pressure on copper prices. Persistent inflation concerns stemming from the conflict, coupled with high inventory levels, have kept copper prices under broad pressure.