US Dollar Index Pulls Back, Most-Traded BC Copper Rises [SMM BC Copper Commentary]

SMM February 6 News: Today, the most-traded BC copper 2503 futures contract opened lower and moved higher, starting at 66,550 yuan/mt. It closed with a bullish candlestick, trading above the daily moving average, with the lower shadow piercing the Bollinger mid-band. Overnight, the most-traded BC copper 03 contract opened lower with a gap, hitting bottom at 66,320 yuan/mt as shorts increased their positions, then rebounded and stabilized above 67,000 yuan/mt as shorts exited. During the morning trading session, the futures market center rose further as longs increased their positions. In the afternoon trading session, the most-traded BC copper 03 contract fluctuated and adjusted, reaching a high of 68,030 yuan/mt and finally closing at 67,940 yuan/mt, up 1,180 yuan/mt or 1.77%. The increase was mainly driven by longs adding positions, with open interest reaching 5,857 lots, up 512 lots from the previous trading day, and trading volume reaching 11,104 lots, an increase of 5,824 lots from the previous trading day.

Macro side, US data showed mixed performance. Some US Fed officials made dovish remarks, and the uncertainty brought by previous US tariff policies eased, improving market sentiment. The US dollar index pulled back, driving copper prices higher.

The SHFE copper 2503 contract closed at 76,480 yuan/mt. Based on the BC copper 2503 contract price of 67,940 yuan/mt, its tax-inclusive price is approximately 76,772 yuan/mt. The price spread between the SHFE copper 2503 contract and the BC copper 2503 contract was -292 yuan/mt, with the spread remaining inverted and widening compared to the previous trading day.