US Dollar Index Stabilizes, Copper Prices Fluctuate; BC Copper Most-Traded Contract Closes Lower [SMM BC Copper Commentary]

SMM, February 11: Today, the most-traded BC copper 2503 futures contract opened at 68,930 yuan/mt and closed with a bearish candlestick, with the upper shadow piercing through the Bollinger upper band. Overnight, the most-traded BC copper 03 contract tested the 69,000 yuan/mt level amid a tug-of-war between longs and shorts, reaching a high of 69,100 yuan/mt. During the morning trading session, as shorts increased their positions, the futures market center moved lower, hitting bottom at 68,460 yuan/mt. In the afternoon trading session, the most-traded BC copper 03 contract fluctuated rangebound within the 68,610-68,780 yuan/mt range, eventually closing at 68,630 yuan/mt, down 250 yuan/mt or 0.36%. The decline was mainly attributed to long liquidation, with open interest at 5,734 lots, down 7 lots from the previous trading day, and trading volume at 8,252 lots, a decrease of 4,360 lots from the previous trading day.

Macro side, market sentiment fluctuated around US tariff policies. Following the US government's announcement of a 25% tariff on steel and aluminum, Trump stated that further tariff plans would be announced in the coming days. The US dollar index stabilized, and copper prices fluctuated and adjusted, closing lower for the day. Tomorrow night, the US January inflation data will be released, and investors are watching for more clues from the data.

The SHFE copper 2503 contract closed at 77,150 yuan/mt. Based on the BC copper 2503 contract price of 68,630 yuan/mt, its post-tax price is approximately 77,552 yuan/mt. The price spread between the SHFE copper 2503 contract and the BC copper 2503 contract stood at -402 yuan/mt, with the spread remaining inverted and widening compared to the previous trading day.