Peru Mine Concerns Cause Disruptions, Copper Prices Hover at Highs [SMM BC Copper Commentary]

Today, the most-traded BC copper 2606 contract opened at 93,550 yuan/mt, touching a low of 93,550 yuan/mt right at the open before maintaining a fluctuating trend at highs. Near the close, it rose to 95,490 yuan/mt and ultimately settled at 94,500 yuan/mt, up 1.81%. Open interest stood at 9,614 lots, an increase of 82 lots from the previous trading day, while trading volume reached 10,260 lots, an increase of 1,881 lots from the previous trading day. On the macro front, Peru, as a major global copper exporter, issued an emergency energy crisis decree on Monday, sparking market concerns over ore supply disruptions and driving copper prices to fluctuate at highs. Fundamentals side, on the supply side, with delivery approaching, suppliers showed a stronger willingness to ship to delivery warehouses, and the spot supply landscape remained tight; on the demand side, downstream purchasing sentiment was weak due to high copper prices.

The SHFE copper 2606 contract closed at 106,510 yuan/mt. Based on the BC copper 2606 contract price of 94,500 yuan/mt, its after-tax price was 106,785 yuan/mt. The price spread between the SHFE copper 2606 contract and BC copper was -275 yuan/mt, showing an inversion that widened compared to the previous day.