US Dollar Index Pulls Back, Weakening Its Suppression on Copper Prices; Most-Traded BC Copper Futures Close Higher [SMM BC Copper Commentary]

SMM January 6 News: Today, the most-traded BC copper 2502 futures contract opened at 64,660 yuan/mt, closing with a bullish candlestick and an upper shadow piercing the 10-day moving average. On Friday night, the most-traded BC copper contract opened higher and moved upward, rising above the 65,000 yuan/mt mark after shorts reduced their positions. During Monday's morning trading session, it peaked at 65,640 yuan/mt but lacked upward momentum and dropped back slightly. In the afternoon trading session, as longs reduced their positions, the most-traded BC copper 2502 contract gave back part of its gains, ultimately closing at 65,180 yuan/mt, up 610 yuan/mt or 0.94%. The main driver was shorts reducing their positions. Open interest decreased to 6,391 lots, down 965 lots from the previous trading day, while trading volume reached 8,391 lots, an increase of 523 lots from the previous trading day.

Macro side, recent macro data releases have been relatively sparse. However, ahead of Trump's official inauguration, the US dollar index fluctuated at highs. With the US dollar index pausing its upward trend and pulling back slightly during the day, the pressure on copper prices eased.

The SHFE copper 2502 contract closed at 73,600 yuan/mt. Based on the BC copper 2502 contract price of 65,180 yuan/mt, its tax-inclusive price is approximately 73,653 yuan/mt. The price spread between the SHFE copper 2502 contract and the BC copper 2502 contract was -53 yuan/mt, shifting from a positive spread to an inverted one.