Copper Prices Continue to Pull Back, Intraday BC Copper Most-Traded Contract Weakly Fluctuates and Adjusts [SMM BC Copper Commentary]

SMM February 18 News: Today, the most-traded BC copper 2503 futures contract opened at 68,040 yuan/mt and closed with a gain during the day. Overnight, the most-traded BC copper 03 contract opened lower with a gap and fluctuated rangebound, testing the 68,000 yuan/mt level. By the end of the session, it reached a high of 68,400 yuan/mt as shorts reduced positions. During the morning trading session, as shorts increased positions, the futures market center moved lower, bottoming at 67,940 yuan/mt before rebounding and stabilizing above 68,000 yuan/mt. In the afternoon trading session, the most-traded BC copper 03 contract fluctuated within the range of 68,050-68,260 yuan/mt and finally closed at 68,220 yuan/mt, down 700 yuan/mt or 1.02%. The decline was mainly attributed to longs reducing positions, with open interest at 4,938 lots, a decrease of 372 lots compared to the previous trading day. Trading volume reached 6,700 lots, down 5,716 lots from the previous trading day.

Macro side, US Fed officials released hawkish signals, expressing support for pausing interest rate cuts. Meanwhile, as market sentiment regarding US tariff uncertainties gradually eased, copper prices continued to retreat, fluctuating downward during the day.

The SHFE copper 2503 contract closed at 76,850 yuan/mt. Based on the BC copper 2503 contract price of 68,220 yuan/mt, its tax-inclusive price is approximately 77,089 yuan/mt. The price spread between the SHFE copper 2503 contract and the BC copper 2503 contract was -239 yuan/mt, with the spread remaining inverted and widening compared to the previous trading day.