US Dollar Index Rebounds, Copper Prices Retreat; BC Copper Most-Traded Contract Closes Lower [SMM BC Copper Commentary]

SMM March 21 Report: Today, the most-traded BC copper 2505 contract opened at 72,510 yuan/mt and closed with a negative candle, with the upper shadow piercing through the upper Bollinger band. Overnight, the most-traded BC copper 05 contract opened lower with a gap and fluctuated within the range of 72,260-72,630 yuan/mt; during the morning trading session, the futures market hit a high of 72,970 yuan/mt before pulling back as shorts increased their positions; in the afternoon trading session, with bears dominating, the most-traded BC copper 05 contract continued to weaken, hitting bottom at 71,770 yuan/mt, and finally closed at 71,900 yuan/mt, down 680 yuan/mt, or 0.94%, mainly due to longs reducing their positions. Open interest reached 11,248 lots, a decrease of 43 lots from the previous trading day, while trading volume was 9,076 lots, a reduction of 570 lots from the previous trading day. Macro side, as macro sentiment was digested, the overall market atmosphere was weak during the day, and the US dollar index rebounded, putting pressure on copper prices, which adjusted and closed lower in a weak range. The SHFE copper 2505 contract closed at 80,610 yuan/mt. If calculated based on the BC copper 2505 contract price of 71,900 yuan/mt, the post-tax price would be approximately 81,247 yuan/mt. The price spread between the SHFE copper 2505 contract and the BC copper 2505 contract was -637 yuan/mt, maintaining an inverted spread but narrowing compared to the previous trading day.