Market Sentiment Cautious as BC Copper Most-Traded Contract Edges Down Slightly [SMM BC Copper Commentary]

SMM March 3 News: Today, the most-traded BC copper 2504 futures contract opened at 68,530 yuan/mt, closed with a positive candlestick, and operated above the daily moving average, with the lower shadow piercing the Bollinger mid-band. On Friday night, the most-traded BC copper 04 contract weakened as bulls reduced positions, hitting bottom at 68,160 yuan/mt after bears entered the market. During the Monday morning trading session, the contract opened higher, climbed to 68,880 yuan/mt as bulls increased positions, and then fluctuated downward. In the afternoon trading session, the center of the most-traded BC copper 04 contract slightly declined, eventually closing at 68,570 yuan/mt, down 40 yuan/mt or 0.06%. The decline was mainly attributed to bears reducing positions, with open interest at 7,053 lots, a decrease of 684 lots compared to the previous trading day, and trading volume at 8,945 lots, down 826 lots from the previous trading day.

Macro side, after the US dollar index rebounded on Friday, it fluctuated downward today. Market sentiment remained relatively cautious due to uncertainties surrounding US tariff policies, geopolitical conflicts, and the upcoming Two Sessions in China, putting pressure on copper prices, with the most-traded BC copper contract slightly closing lower.

The SHFE copper 2504 contract closed at 77,050 yuan/mt. Based on the BC copper 2504 contract price of 68,570 yuan/mt, its post-tax price is approximately 77,484 yuan/mt. The price spread between the SHFE copper 2504 contract and the BC copper 2504 contract was -434 yuan/mt, with the spread remaining inverted but narrowing compared to the previous trading day.