Today, the most-traded BC copper contract 2603 opened at 90,160 yuan/mt. At the beginning of the session, the center of copper prices tested the low at 89,880 yuan/mt, then rose to test the high at 91,040 yuan/mt before fluctuating downward, and finally closed at 90,200 yuan/mt, up 0.21%. Open interest reached 4,873 lots, down 387 lots from the previous trading day, and trading volume reached 3,022 lots, down 3,104 lots from the previous trading day. On the macro front, the US Maritime Administration recommended US merchant ships avoid Iranian waters, and US officials also commented on the impact of AI on employment and the weakening confidence in the US dollar. The weakening US dollar provided support for copper prices, but weak domestic demand limited the upside room for copper prices. On the fundamental side, supply was affected by the price spread between futures contracts; most suppliers held back sales to wait for delivery in order to gain profits, tightening the availability of spot goods in the market. Demand side, as some downstream enterprises entered the holiday and stockpiling was basically completed, consumption gradually weakened.
SHFE copper contract 2603 closed at 101,560 yuan/mt. Based on the BC copper contract 2603 price of 90,200 yuan/mt, its after-tax price was 101,926 yuan/mt. The price spread between SHFE copper 2603 and BC copper was -366, maintaining an inverted spread and narrowing compared to the previous day.
