Market Sentiment Cools Down, Futures Market Pulls Back, Most-Traded BC Copper Contract Closes Lower [SMM BC Copper Commentary]

SMM March 10 News: Today, the most-traded BC copper 2504 futures contract opened at 70,180 yuan/mt, closing with a bearish candlestick and an upper shadow piercing the Bollinger upper band. On Friday night, the most-traded BC copper 04 contract saw its center move upward as shorts reduced positions, reaching a high of 70,520 yuan/mt before pulling back. During Monday's morning trading session, as shorts entered the market, the futures fluctuated downward and lost the 70,000 yuan/mt level. In the afternoon trading session, the most-traded BC copper 04 contract fluctuated rangebound, hitting bottom at 69,710 yuan/mt and eventually closing at 69,780 yuan/mt, down 650 yuan/mt or 0.92%. This was mainly driven by an increase in long positions, with open interest reaching 8,431 lots, a decrease of 341 lots compared to the previous trading day. Trading volume reached 8,422 lots, down 2,743 lots from the previous trading day.

Macro side, on Friday night, US February non-farm payrolls recorded 151,000, below the expected 160,000, while the unemployment rate stood at 4.1%, higher than the expected 4%. Following the earlier weaker-than-expected US ADP employment data, the non-farm payrolls data also indicated a cooling US labour market. The US dollar index continued to weaken, providing support for copper prices. However, as market sentiment cooled and concerns over US tariff uncertainties emerged, the futures market pulled back slightly, closing with a small loss.

The SHFE copper 2504 contract closed at 78,270 yuan/mt. Based on the BC copper 2504 contract price of 69,780 yuan/mt, its post-tax price is approximately 78,851 yuan/mt. The price spread between the SHFE copper 2504 contract and the BC copper 2504 contract was -581 yuan/mt, with the spread remaining inverted and narrowing compared to the previous trading day.