Today, the most-traded BC copper contract 2606 opened at 92,890 yuan/mt. After opening, copper prices fluctuated downward before the center rose. During the day session, prices probed up to 93,440 yuan/mt before the center dropped sharply, touching a low of 92,550 yuan/mt near the close, and ultimately settled at 92,740 yuan/mt, down 0.27%. Open interest stood at 2,200 lots, a decrease of 408 lots from the previous trading day. Trading volume was 4,254 lots, a decrease of 2,211 lots from the previous trading day. On the macro front, Iran warned that if war resumes, it will strike back fiercely and block regional oil exports, condemning the US for violating the ceasefire agreement, with the Revolutionary Guards claiming to have shot down a US drone. Iran denied reaching a memorandum of understanding, but the president expressed willingness to reach a "dignified" framework agreement. The US carried out a defensive strike in southern Iran but stated it did not mean the ceasefire had ended. With the Middle East situation fluctuating, copper prices retreated after rapid rise. Fundamentals side, supply side, domestic supply arrivals edged up slightly, and tight spot supply eased marginally, but the circulation of high-quality copper remained relatively tight. Demand side, downstream enterprises overall still focused on just-in-time procurement, and market trading was sluggish.
SHFE copper 2606 contract closed at 104,610 yuan/mt. Based on the BC copper 2606 contract price of 92,740 yuan/mt, its after-tax price was 104,796 yuan/mt. The price spread between SHFE copper 2606 contract and BC copper was -186 yuan/mt, showing an inversion that narrowed compared to the previous day.
