Market Risk Appetite Eased, BC Copper Rose 1.36% [SMM BC Copper Review]

The international copper 2505 contract opened at 68,940 yuan/mt today, closing higher with a reduction in short positions. During the night session, the contract initially dipped slightly to the intraday low of 68,750 yuan/mt, then rebounded above the daily average line and fluctuated rangebound. It opened higher during the day, reaching the intraday high of 69,930 yuan/mt, then fluctuated downward. The futures market saw a slight rebound in the afternoon, eventually closing at 69,400 yuan/mt, up 1.36%. The trading volume was 5,570, and the open interest reached 2,952 lots, a decrease of 214 lots from the previous trading day. Macro-wise, US President Trump stated overnight that the US Fed should lower interest rates and that he has no intention of firing Fed Chairman Powell, easing market concerns about the threat to the Fed's independence. Additionally, on tariffs, Trump indicated that the final tariff rate with China would significantly decrease from the current 14.5%. The international trade situation has eased compared to earlier periods, and market risk appetite has improved, boosting copper prices. The SHFE copper 2505 contract closed at 78,090 yuan/mt. Based on the international copper 2505 contract price of 69,400 yuan/mt, its post-tax price is approximately 78,422 yuan/mt. The price spread between the SHFE copper 2505 contract and the international copper 2505 contract was -332 yuan/mt, maintaining an inverted spread and narrowing compared to the previous trading day.