Uncertainty Still Surrounds the Situation in the Middle East, the Most-Traded BC Copper Contract Closed Down 0.05% [SMM BC Copper Commentary]

Today, the most-traded BC copper 2605 contract opened at 84,660 yuan/mt, touched a low of 84,450 yuan/mt in early trading, and then its center fluctuated upward. After the daytime session opened, it hit a high of 85,820 yuan/mt, then moved sideways, and finally closed at 85,180 yuan/mt, down 0.05%. Open interest stood at 6,404 lots, down 38 lots from the previous trading day, while trading volume reached 3,654 lots, down 854 lots from the previous trading day. On the macro front, the number of initial jobless claims in the US pulled back last week, and the labour market remained generally stable. In addition, uncertainty still surrounded the geopolitical situation in Iran, and related statements failed to ease market risk-off sentiment. Fundamentally, on the supply side, imported cargoes have continued to arrive at ports recently, and overall spot circulation remained relatively ample. On the demand side, downstream enterprises still showed limited acceptance of current price levels, and overall just-in-time procurement remained the main approach.

The SHFE copper 2605 contract closed at 96,250 yuan/mt. Based on the BC copper 2605 contract price of 85,180 yuan/mt, its after-tax price was 96,253 yuan/mt. The price spread between the SHFE copper 2605 contract and BC copper was -3 yuan/mt, showing an inverted spread.