Copper Prices Fluctuate and Adjust, Most-Traded BC Copper Contract Closes Slightly Lower [SMM BC Copper Commentary]

SMM, January 22: Today, the most-traded BC copper 2502 futures contract opened at 66,860 yuan/mt and closed with a bullish candlestick, with the upper shadow piercing the 10-day moving average. Overnight, the most-traded BC copper contract opened lower with a gap, hit bottom at 66,770 yuan/mt, and rebounded above the 67,000 yuan/mt mark as bears reduced positions, peaking at 67,220 yuan/mt by the session's end. During the morning trading session, the futures market fluctuated within the range of 66,990-67,210 yuan/mt. In the afternoon trading session, the center of the most-traded BC copper 2502 contract shifted lower as bulls reduced positions, ultimately closing at 66,960 yuan/mt, down 80 yuan/mt or 0.12%. The decline was primarily driven by bulls reducing positions, with open interest at 4,811 lots, a decrease of 151 lots from the previous trading day, and trading volume at 3,570 lots, down 2,017 lots from the previous trading day.

Macro side, after Trump took office, the US tariff policy remains unclear, creating significant uncertainty. Additionally, with the Chinese New Year holiday approaching, the market sentiment was relatively cautious, and copper prices fluctuated during the day, ultimately closing slightly lower.

The SHFE copper 2502 contract closed at 75,360 yuan/mt. Based on the BC copper 2502 contract price of 66,960 yuan/mt, its post-tax price is approximately 75,665 yuan/mt. The price spread between the SHFE copper 2502 contract and the BC copper 2502 contract was -305 yuan/mt, with the spread remaining inverted and widening compared to the previous trading day.