BC Copper Closed Sharply Higher by 1.6%, Easing Geopolitical Tensions Boosted Copper Prices [SMM BC Copper Commentary]

Today, the most-traded BC copper contract 2605 opened at 85,230 yuan/mt, fluctuated downward in early trading to touch a low of 84,570 yuan/mt, then experienced wild swings. During the day session, it opened higher with a gap, then moved sideways, and probed up to 87,270 yuan/mt near the close, ultimately settling at 87,050 yuan/mt, up 1.6%. Open interest stood at 6,306 lots, down 144 lots from the previous trading day, with trading volume at 4,577 lots, indicating bears reducing positions. On the macro front, the US and Iran reached an agreement on a two-week ceasefire, geopolitical tensions eased rapidly, market risk appetite rebounded, which was bullish for copper prices. Fundamentals side, imported copper continued to arrive at ports, while domestic supply tightened, leading to overall tight supply; rising copper prices notably suppressed downstream purchasing, with end-users only restocking for immediate needs, and transactions remained weak.

SHFE copper 2605 contract closed at 98,220 yuan/mt. Based on the BC copper 2605 contract at 87,050 yuan/mt, its after-tax price was 98,366 yuan/mt. The price spread between SHFE copper 2605 and BC copper was -146, with the inverted spread stabilizing compared to the previous day.