Today, the most-traded BC copper contract 2607 opened at 94,370 yuan/mt, touching a high of 94,710 yuan/mt at the beginning of the session before fluctuating downward. After the daytime session opened, the copper price center continued to shift lower, dipping to 93,000 yuan/mt near the close, and ultimately settled at 93,300 yuan/mt, down 1.85%. Open interest stood at 11,187 lots, down 166 lots from the previous trading day, with trading volume at 7,668 lots, indicating bulls reducing positions. On the macro front, US-Iran negotiations remained at a stalemate, and tensions in the Gulf region escalated again, weighing on copper prices. Additionally, the US ADP employment data exceeded market expectations, and the New York Fed President stated that there was no need to raise or cut interest rates at present. Fundamentals side, supply side, arrivals from both imported and domestic sources remained low. Demand side, copper prices pulled back somewhat, stimulating downstream purchasing sentiment and releasing rigid demand. As of Thursday, June 4, SMM copper inventories in mainstream regions nationwide decreased by 10,900 mt WoW to 234,300 mt. Inventory-wise, total inventory increased by 85,500 mt compared to the same period last year when it was 148,800 mt.
The SHFE copper 2607 contract closed at 105,150 yuan/mt. Based on the BC copper 2607 contract at 93,300 yuan/mt, its after-tax price was 105,429 yuan/mt. The price spread between the SHFE copper 2607 contract and BC copper was -279, maintaining an inversion but narrowing notably from the previous day.
