Afternoon Futures Market of Copper Climbs, Most-Traded BC Copper Contract Closes Higher [SMM BC Copper Commentary]

SMM March 5 News: Today, the most-traded BC copper 2504 futures contract fluctuated considerably, opening at 68,560 yuan/mt and closing with a bullish candlestick, with the lower shadow piercing the Bollinger mid-band. Overnight, the most-traded BC copper 04 contract fluctuated downward as shorts increased their positions, hitting bottom at 68,160 yuan/mt. During the morning trading session, the futures market opened higher and then fluctuated within the range of 68,300-68,830 yuan/mt. In the afternoon trading session, the most-traded BC copper 04 contract saw its center rise as longs increased their positions, testing the 69,000 yuan/mt level and reaching a high of 69,080 yuan/mt. It eventually closed at 68,970 yuan/mt, up 310 yuan/mt or 0.45%, mainly driven by an increase in long positions. Open interest reached 7,469 lots, an increase of 396 lots compared to the previous trading day, while trading volume reached 10,381 lots, an increase of 2,989 lots compared to the previous trading day.

Macro side, during the Two Sessions in China, the market awaited more positive policy signals, with overall sentiment leaning optimistic. In the afternoon, US President Trump addressed a joint session of Congress regarding copper-related tariff policies. On February 25 local time, Trump issued an executive order to initiate a Section 232 investigation into imported copper. As of today, he announced a 25% tariff on copper imports, after which copper futures prices rose and closed higher.

The SHFE copper 2504 contract closed at 77,510 yuan/mt. Based on the BC copper 2504 contract price of 68,970 yuan/mt, its post-tax price is approximately 77,936 yuan/mt. The price spread between the SHFE copper 2504 contract and the BC copper 2504 contract was -426 yuan/mt, with the spread remaining inverted and widening compared to the previous trading day.