Market Risk Aversion Sentiment Rises, Most-Traded BC Copper Contract Closes Lower [SMM BC Copper Commentary]

SMM, February 25: Today, the most-traded BC copper 2504 futures contract opened at 68,870 yuan/mt, closing with a bearish candlestick and operating below the daily moving average. Overnight, the most-traded BC copper 04 contract saw an increase in long positions after opening, reaching a high of 69,070 yuan/mt. Subsequently, as short positions entered the market, the futures market fluctuated and pulled back. During the morning trading session, the market fluctuated within the range of 68,600-68,840 yuan/mt. In the afternoon trading session, the most-traded BC copper 04 contract saw a reduction in long positions, with the market center weakening and hitting bottom at 68,540 yuan/mt near the close, ultimately settling at 68,560 yuan/mt, down 420 yuan/mt or 0.61%. The decline was mainly attributed to an increase in short positions, with open interest reaching 8,306 lots, up 10 lots from the previous trading day, and trading volume reaching 10,925 lots, an increase of 3,988 lots from the previous trading day.

Macro side, the US deadline for tariffs on Canada and Mexico is set for next week, and the recent easing of US-Russia relations has heightened market risk aversion sentiment. The US dollar index stopped falling and began to rebound, exerting pressure on copper prices.

The SHFE copper 2504 contract settled at 76,950 yuan/mt. Based on the BC copper 2504 contract price of 68,560 yuan/mt, its post-tax price is approximately 77,473 yuan/mt. The price spread between the SHFE copper 2504 contract and the BC copper 2504 contract stood at -523 yuan/mt, with the spread remaining inverted and widening compared to the previous trading day.