BC Copper 2603 closed down 2.25% as macro headwinds continued to weigh [SMM BC Copper Review]

Today, the most-traded BC copper 2603 contract opened at 89,230 yuan/mt. It fluctuated upward at the start of the session, touching a high of 89,900 yuan/mt, then fluctuated rangebound. During the day session, it opened lower with a gap, and the price center moved straight down, testing a low of 86,850 yuan/mt, before fluctuating upward and finally closing at 88,790 yuan/mt, down 2.25%. Open interest reached 5,575 lots, a decrease of 228 lots from the previous trading day, while trading volume reached 9,542 lots, indicating long position reduction. From a macro perspective, the US and Iran agreed to hold talks in Oman on Friday, easing geopolitical risk uncertainty. Combined with a higher US dollar index, copper prices were under pressure. Meanwhile, continued LME inventory buildup further pressured copper prices. On the supply side, market availability of spot cargo tightened continuously, leading to some tightness in spot supply. On the demand side, supported by the copper price pullback, downstream purchase willingness improved.

SHFE copper 2603 contract closed at 100,100 yuan/mt. Based on the BC copper 2603 contract price of 88,790 yuan/mt, its post-tax price is 100,332 yuan/mt. The price spread between SHFE copper 2603 and BC copper is -232, with the spread remaining inverted and continuing to widen.