Stronger US Dollar Dragged Down Copper Prices, BC Copper Closed Down 0.72% Intraday [SMM BC Copper Commentary]

Today, the most-traded BC copper contract 2605 opened at 90,710 yuan/mt, touching a high of 90,910 yuan/mt at the start of the session before the center fluctuated downward. After the daytime session opened, it dipped to 90,040 yuan/mt, then moved sideways around the center and closed at 90,420 yuan/mt, down 0.72%. Open interest stood at 1,669 lots, down 731 lots from the previous trading day, and trading volume was 4,294 lots, down 766 lots from the previous trading day. On the macro front, the US requested negotiations, and Iran was considering the proposal. According to US media reports, Iran proposed reopening the Strait of Hormuz while postponing nuclear talks; Trump was skeptical but did not directly reject the proposal. Heightened macro uncertainty strengthened risk-averse sentiment in the market, and a stronger US dollar weighed on copper prices. Fundamentals side, with month-end settlement approaching, shipments sentiment among some suppliers was suppressed, and circulating supplies in the market were limited. Demand side, affected by elevated copper prices, actual demand growth remained limited.

The SHFE copper 2605 contract closed at 102,140 yuan/mt. Based on the BC copper 2605 contract price of 90,420 yuan/mt, the after-tax price was 102,175 yuan/mt. The price spread between the SHFE copper 2605 contract and BC copper was -35 yuan/mt, showing an inversion that narrowed compared to the previous day.