Copper Prices Fluctuated Downward During the Day; BC Copper Most-Traded Contract Closed Lower [SMM BC Copper Commentary]

SMM February 24 News: Today, the most-traded BC copper 2504 futures contract opened at 68,980 yuan/mt, closing with a bearish candlestick and operating below the daily moving average. On Friday night, the most-traded BC copper 04 contract opened higher and moved upward as bulls increased positions, pushing the futures market above the 69,000 yuan/mt level, peaking at 69,250 yuan/mt. During Monday's morning trading session, the contract weakened as bears increased positions, bottoming at 68,760 yuan/mt before the center rebounded. In the afternoon trading session, the most-traded BC copper 04 contract fluctuated downward in an adjustment phase, ultimately closing at 68,860 yuan/mt, down 180 yuan/mt or 0.26%. The main feature was an increase in bullish positions, with open interest reaching 8,296 lots, up 824 lots from the previous trading day, and trading volume reaching 6,937 lots, an increase of 413 lots from the previous trading day.

Macro side, last Friday, US data showed mixed performance. The US dollar index fell below the 107 level. The preliminary February Markit Manufacturing PMI in the US recorded 51.6, higher than the expected 51.5 and the previous value of 51.2, while the Services PMI significantly missed expectations, recording 49.7. Fundamentals side, domestic copper cathode social inventory continued to see inventory buildup, and copper prices fluctuated weakly during the day, closing lower.

The SHFE copper 2504 contract closed at 77,320 yuan/mt. Based on the BC copper 2504 contract price of 68,860 yuan/mt, its tax-inclusive price is approximately 77,812 yuan/mt. The price spread between the SHFE copper 2504 contract and the BC copper 2504 contract was -492 yuan/mt, maintaining a backwardation and widening compared to the previous trading day.