Copper prices fluctuated considerably and closed higher, up 0.13%. The price spread between SHFE copper and BC copper inverted further to -643 [SMM BC Copper Commentary]

Today, the most-traded BC copper 2508 contract opened at 70,840 yuan/mt, closing the day with a positive candlestick and supported by the upper Bollinger Band at the bottom. During the night session, the most-traded BC copper contract dipped to an intraday low of 70,830 yuan/mt at the start, then the center of copper prices continued to rise, touching a high of 71,340 yuan/mt. During the daytime session, copper prices pulled back from highs, maintaining a pattern of considerable fluctuations, and closed at 71,180 yuan/mt, up 90 yuan/mt or 0.13%. Open interest reached 5,181 lots, an increase of 309 lots from the previous trading day, and trading volume reached 5,562 lots. On the macro side, Trump intensified pressure on Fed Chairman Powell, calling for lower borrowing costs. The market speculated that a US interest rate cut might occur earlier and be more significant than currently expected. Traders increased their bets on a Fed interest rate cut, anticipating a 66 basis point reduction before the end of the year, an increase from previous expectations. This led to a decline in the US dollar index, which was bullish for copper prices.

The SHFE copper 2508 contract closed at 79,870 yuan/mt. If calculated based on the most-traded BC copper 2508 contract price of 71,180 yuan/mt, its after-tax price would be approximately 80,513 yuan/mt. The price spread between the SHFE copper 2508 contract and the BC copper contract was -643, maintaining an inverted spread and widening from the previous day.