US Dollar Index Rebound Limits Copper Price Gains, BC Copper Most-Traded Contract Posts Slight Increase [SMM BC Copper Commentary]

SMM February 10 News: Today, the most-traded BC copper 2503 futures contract opened at 68,800 yuan/mt, forming a bearish doji with an upper shadow piercing the upper Bollinger Band. On Friday night, after the opening of the most-traded BC copper 03 contract, bulls gained the upper hand in the market, driving futures higher. The price peaked at 69,350 yuan/mt before bears entered, causing the center of the market to pull back. During Monday's morning trading session, bears dominated, erasing earlier gains and pushing the price below the 69,000 yuan/mt threshold. In the afternoon trading session, the most-traded BC copper 03 contract fluctuated within the range of 68,540-68,910 yuan/mt, eventually closing at 68,790 yuan/mt, up 670 yuan/mt or 0.98%. The increase was mainly attributed to short covering, with open interest at 5,741 lots, down 72 lots from the previous trading day, and trading volume reaching 12,612 lots, an increase of 2,193 lots from the previous trading day.

Macro side, last Friday's data showed the US January unemployment rate at 4%, lower than the expected and previous value of 4.1%. Seasonally adjusted non-farm payrolls for January recorded 143,000, compared to the previous values of 307,000 and 170,000. The data reflects the healthy state of the US labour market, increasing the likelihood that the US Fed will hold rates steady at its next policy meeting. The rebound in the US dollar limited copper price gains.

The SHFE copper 2503 contract closed at 77,370 yuan/mt. Based on the BC copper 2503 contract price of 68,790 yuan/mt, its post-tax price is approximately 77,733 yuan/mt. The price spread between the SHFE copper 2503 contract and the BC copper 2503 contract was -363 yuan/mt, with the spread remaining inverted and narrowing compared to the previous trading day.