Intraday Copper Prices Weakened, With the Most-Traded BC Copper Contract Closing Lower [SMM BC Copper Commentary]

SMM February 21 News: Today, the most-traded BC copper 2503 futures contract moved downwards after a higher opening, starting at 69,190 yuan/mt and closing with a bearish candlestick, operating below the daily moving average throughout the day. Overnight, the most-traded BC copper 03 contract tested the 69,000 yuan/mt level after reaching a high of 69,190 yuan/mt at the opening, followed by fluctuating adjustments. During the morning trading session, the futures market center weakened as shorts increased their positions. In the afternoon trading session, the most-traded BC copper 03 contract continued to fluctuate downward, hitting bottom at 68,450 yuan/mt as longs reduced their positions, and eventually closed at 68,520 yuan/mt, down 280 yuan/mt or 0.41%. The decline was mainly driven by an increase in short positions, with open interest reaching 5,168 lots, up 159 lots from the previous trading day, while trading volume totaled 7,093 lots, down 732 lots from the previous trading day.

Macro side, the uncertainty of tariffs continued to repeatedly affect market sentiment. The US Fed maintained a cautious stance on inflation. After weakening overnight, the US dollar index rebounded during the day, exerting pressure on base metals, leading to a weaker performance in intraday copper futures.

The SHFE copper 2503 contract closed at 77,020 yuan/mt. Based on the BC copper 2503 contract price of 68,520 yuan/mt, its post-tax price is approximately 77,428 yuan/mt. The price spread between the SHFE copper 2503 contract and the BC copper 2503 contract stood at -408 yuan/mt, with the spread remaining inverted and widening compared to the previous trading day.