US Dollar Index Rebound Limits Copper Price Increase; BC Copper Most-Traded Contract Edges Higher [SMM BC Copper Commentary]

Published: Jan 8, 2025 16:17

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[SMM BC Copper Commentary: US Dollar Index Rebound Limits Copper Price Increase, BC Copper Most-Traded Contract Edges Higher] SMM reported on January 8: Today, the most-traded BC copper 2502 futures contract opened at 66,260 yuan/mt and closed with a bearish candlestick during the day...

SMM, January 8: Today, the most-traded BC copper 2502 futures contract opened at 66,260 yuan/mt and closed with a bearish candlestick. Overnight, the most-traded BC copper contract hit a high of 66,260 yuan/mt at the open, followed by a tug-of-war between longs and shorts, with the futures market testing the key level of 66,000 yuan/mt. During the morning trading session, the futures fluctuated rangebound within 65,970-66,150 yuan/mt. In the afternoon session, the most-traded BC copper 2502 contract dipped to 65,930 yuan/mt before rebounding as bears reduced positions, eventually closing at 66,160 yuan/mt, up 170 yuan/mt or 0.26%. The increase was mainly attributed to short covering. Open interest stood at 5,095 lots, down 459 lots from the previous trading day, while trading volume reached 5,903 lots, a decrease of 3,866 lots from the previous day.

Macro side, recent US data has lowered market expectations for US Fed interest rate cuts, leading to a rebound in the US dollar index, which has suppressed copper prices. The most-traded BC copper contract edged up slightly during the day. Tonight, US employment market-related data will be released, and the market awaits further guidance.

The SHFE copper 2502 contract closed at 74,480 yuan/mt. Based on the BC copper 2502 contract price of 66,160 yuan/mt, its post-tax price is approximately 74,761 yuan/mt. The price spread between the SHFE copper 2502 contract and the BC copper 2502 contract stood at -281 yuan/mt, with the spread remaining inverted and widening compared to the previous trading day.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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