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

       SMM March 17 News: Today, the most-traded BC copper 2505 futures contract opened at 71,450 yuan/mt and closed with a gain. On Friday night, the BC copper 2505 contract opened lower, fluctuated and hit bottom at 71,080 yuan/mt before stopping its decline and beginning to rebound. During the Monday morning trading session, the futures market fluctuated considerably, hitting a low of 71,130 yuan/mt. In the afternoon trading session, the most-traded BC copper 05 contract rose strongly, climbing all the way to a session high of 71,780 yuan/mt before finally closing at 71,730 yuan/mt, up by 0.65%. Open interest reached 9,405 lots, an increase of 400 lots compared to the previous trading day, while trading volume was 4,825 lots, a decrease of 1,712 lots from the previous trading day.

       Macro side, the US consumer confidence index for March fell for the third consecutive month, while consumer expectations for future inflation rose, with the annual inflation rate for the next year expected to be 4.9%, the highest level since 2022. Additionally, the US Commerce Secretary stated that tariffs on imported cars might be imposed next month. The Trump administration's erratic tariff policies, escalating trade wars, and declining consumer and business confidence have heightened market concerns about an economic recession, with the US dollar index hovering at low levels, providing support for copper prices.

      The SHFE copper 2505 contract closed at 80,520 yuan/mt. Based on the BC copper 2505 contract price of 71,730 yuan/mt, its post-tax price is approximately 81,055 yuan/mt. The price spread between the SHFE copper 2505 contract and the BC copper 2505 contract was -535 yuan/mt, with the spread remaining inverted and narrowing compared to the previous trading day.