The Zhitong Finance App learned that copper stocks had the highest increase in early trading. As of press release, Minmetals Resources (01208) rose 6.86% to HK$4.05; China Nonferrous Mining (01258) rose 5.92% to HK$8.41; China Gold International (02099) rose 5.28% to HK$53.8; and Zijin Mining (02899) rose 2.61% to HK$18.86.

According to news, copper futures on the Chicago Mercantile Exchange (COMEX) hit a record high on Wednesday, with a cumulative increase of more than 10% since this month. Wall Street traders said that New Zealand copper is shorting like never before. Traders who short on copper futures or directly shorted the July NZ futures contract faced significant losses and were forced to make up their positions.

Maike Futures analyst Deng Hong said that the risk of shorting out in this round began in April. Due to the sharp rise in copper prices, the COMEX copper futures price was significantly higher than the price of Shanghai copper futures, which attracted a large amount of false bears to accumulate in reverse trading. COMEX copper futures contract positions once reached 170,000 lots in July, but currently the inventory is only 20,000 tons, and the pressure to close short positions is huge. “Since May, bears have begun organizing supplies, but due to many factors such as sanctions on Russian metals and production cuts at overseas refineries, etc., it will still take time to organize sufficient delivery of brand supplies. The pressure to squeeze inventory will continue in the near future, supporting copper prices to remain strong as a whole.”