Bulls exited, the most-traded SHFE BC copper contract recorded two consecutive declines [SMM BC Copper Commentary]

Today, the international copper 2505 contract opened at 72,090 yuan/mt, closed in the red, mainly due to long position reductions. Overnight, the most-traded international copper contract opened lower with a gap, initially touched a high of 72,260 yuan/mt before retreating, then fluctuated rangebound around the daily average line. After the daytime opening, copper prices continued to fluctuate downward, hitting a low of 71,540 yuan/mt in the afternoon, and closed at 71,630 yuan/mt, down 1.44%. The trading volume was 11,235 lots, and the open interest reached 9,178 lots, a decrease of 1,000 lots compared to the previous trading day.

Macro-wise, tariff expectations brought uncertainty. The US market expected the tariff implementation to take several months, but the latest news suggested it could be completed within weeks, sparking concerns about the balance of copper supply and demand, leading to recent price pullbacks. The current focus of the copper market remains on US tariff policies, with short-term attention on the US tariff policy guidance on April 2.

The SHFE copper 2505 contract closed at 80,450 yuan/mt. Based on the international copper 2505 contract at 71,630 yuan/mt, its post-tax price is approximately 80,942 yuan/mt. The price spread between the SHFE copper 2505 contract and the international copper 2505 contract was -492 yuan/mt, maintaining an inverted spread and narrowing compared to the previous trading day.