The most-traded BC copper contract 2606 opened at 89,560 yuan/mt today. It maintained wild swings in early trading, then the copper price center gradually shifted upward to 89,990 yuan/mt after the daytime session opened, before fluctuating downward to a low of 89,150 yuan/mt, and finally closed at 89,460 yuan/mt, down 0.26%. Open interest stood at 9,089 lots, an increase of 166 lots from the previous trading day, with trading volume at 5,934 lots, indicating bears adding positions. The US Fed kept the current interest rate unchanged, with notable internal policy stance divergence. Powell will remain as a governor after stepping down as Fed Chairman, and Warsh's nomination has passed the Senate committee review. Trump stated that conditions were currently suitable for an interest rate cut, while making clear that sanctions on Iran would not be lifted until the Iranian nuclear issue is resolved. The US and Iran are currently maintaining phone communications. Iran released a tough signal, warning that if the US continued to seize vessels, it might take unprecedented military countermeasures, with related retaliation plans still advancing. Combined with rising international crude oil prices, the overall atmosphere exerted some pressure on copper prices. Fundamentals side, on the supply end, arrivals of imported copper pulled back, while domestic source arrivals remained stable. However, approaching the month-end settlement period, suppliers showed weak willingness to sell, and spot circulation remained tight. Demand side, end-user pre-holiday stockpiling was largely completed, overall procurement sentiment was sluggish, and spot trades were mediocre. Inventory side, as of Thursday April 30, SMM copper cathode social inventory in major regions nationwide decreased by 5,600 mt WoW to 243,000 mt; current total inventory was 113,400 mt higher compared to the same period last year at 129,600 mt.
SHFE copper 2606 contract closed at 101,030 yuan/mt. Based on BC copper 2606 contract at 89,460 yuan/mt, its after-tax price was 101,089 yuan/mt, and the price spread between SHFE copper 2606 and BC copper was -59, with the spread returning to an inverted state.
