Today, the most-traded BC copper 2605 contract opened at 85,020 yuan/mt. Its center fluctuated upward and, after hitting a high of 84,940 yuan/mt, began to decline. Near the close, it touched a low of 84,260 yuan/mt and finally settled at 84,410 yuan/mt, down 0.09%. Open interest reached 6,279 lots, an increase of 157 lots from the previous trading day, while trading volume came in at 3,298 lots, a decrease of 1,106 lots from the previous trading day. On the macro front, a US Fed governor mentioned that interest rates could be cut gradually by 1 percentage point within a year, while Powell said energy shocks are usually short-lived and patience is warranted. After the remarks, the market priced in only about 3 basis points of rate cuts by year-end. Meanwhile, Iran’s parliament approved the imposition of strait transit fees, US-Iran talks continued, Trump threatened to strike Iran’s energy facilities if the talks collapsed, and Europe said Iran had armed the Houthis in the Red Sea conflict, though internal differences remained. The market was still trading these developments. Fundamentals, supply side, imported cargoes had continued to arrive recently, and overall spot circulation was relatively ample. Demand side, as a new monthly procurement cycle begins, the previously accumulated purchasing demand from downstream enterprises will be gradually released.
The SHFE copper 2605 contract closed at 95,340 yuan/mt. Based on the BC copper 2605 contract price of 84,410 yuan/mt, its after-tax price was 95,383 yuan/mt. The price spread between the SHFE copper 2605 contract and BC copper was -43 yuan/mt. The spread remained inverted and narrowed somewhat from the previous day.
