Declining US Dollar Index Under Pressure Boosted Copper Prices, BC Copper Most-Traded Contract Closed Up 0.98% [SMM BC Copper Comment]

Today, the most-traded BC copper contract 2605 opened at 90,590 yuan/mt, touching a low of 90,500 yuan/mt at the beginning of the session before the center rose to a high of 91,630 yuan/mt. During the afternoon trading session, copper prices fluctuated downward, ultimately closing at 90,750 yuan/mt, up 0.98%. Open interest stood at 6,656 lots, an increase of 190 lots from the previous trading day, and trading volume reached 6,238 lots, an increase of 1,223 lots from the previous trading day. On the macro front, Trump said US-Iran talks might be held in Pakistan within the next two days. Pakistan called for a 45-day ceasefire extension, and both sides agreed to continue negotiations, though the time and location remained undetermined. Sources said Iran was considering temporarily suspending shipping through the Strait of Hormuz to facilitate negotiations, while the US military had no plan to fire on Iranian oil tankers for now. Israel and Lebanon agreed to launch direct negotiations. The US March PPI came in at 4%, below expectations of 4.6%. Optimistic sentiment over US-Iran peace talks, combined with weaker-than-expected economic data, put the US dollar index under pressure, which was bullish for copper prices. Fundamentals side, supply side, influenced by the market structure, suppliers were more inclined to hold positions for delivery to capture the price spread between futures contracts, leading to tight spot cargo circulation in the market. Demand side, as copper prices rose again, market participants generally adopted a wait-and-see attitude, with purchasing becoming more cautious.

SHFE copper 2605 contract closed at 102,090 yuan/mt. Based on the BC copper 2605 contract price of 90,750 yuan/mt, the after-tax price was 102,548 yuan/mt. The price spread between SHFE copper 2605 and BC copper was -458 yuan/mt, showing an inverted spread that widened compared to the previous day.