Copper prices fluctuated and adjusted intraday, with the most-traded BC copper contract closing lower. [SMM BC Copper Commentary]

Today, the international copper 2505 contract opened at 72,770 yuan/mt, closed lower intraday, mainly due to long position reduction. Overnight, copper prices edged up slightly, then pulled back and fluctuated rangebound around the daily average line. After the market opened, long positions were closed and short positions were opened, the futures market tested the intraday low of 72,310 yuan/mt before rebounding, and hit the intraday high of 73,010 yuan/mt in the afternoon, closing at 72,640 yuan/mt, down 1.16%. The trading volume was 11,731 lots, and the open interest reached 10,178 lots, down 154 lots from the previous trading day.

Macro-wise, Trump announced a 25% tariff on imported cars on Wednesday, and insiders said the US will accelerate the imposition of copper tariffs, several months ahead of the expected time, sparking concerns about escalating trade tensions and slowing global economic growth. The current tariff expectations still affect copper prices, COMEX copper remains strong, and changes in US economic expectations are being watched.

The SHFE copper 2505 contract closed at 81,560 yuan/mt. Based on the international copper 2505 contract price of 72,640 yuan/mt, its after-tax price is about 82,083 yuan/mt. The price spread between the SHFE copper 2505 contract and the international copper 2505 contract was -523 yuan/mt, the spread remained inverted and narrowed compared to the previous trading day.