The most-traded BC copper futures contract closed higher, rising 0.64%, as weak supply and demand formed a bottom to support copper prices [SMM BC Copper Commentary]

Today, the most-traded BC copper 2508 contract opened at 70,710 yuan/mt and closed with a positive daily candle. During the night session, the most-traded BC copper 2508 contract fluctuated considerably and moved higher initially. After the day session opened, it rose to 70,950 yuan/mt. Subsequently, the center of copper prices gradually moved lower, touching a low of 70,570 yuan/mt near the end of the session, and finally closed at 70,800 yuan/mt, with a gain of 0.64%. Open interest reached 3,998 lots, a decrease of 200 lots from the previous trading day, and trading volume reached 5,416 lots. On the macro side, the EU is contemplating potential retaliatory measures against US tariffs but prioritizes diplomatic negotiations, easing market concerns about a sharp escalation in trade conflicts. On the fundamental side, LME inventory increased by 2,775 mt to 124,850 mt, still maintaining a low operating range. On the demand side, after copper prices stopped falling and rebounded, downstream purchasing sentiment gradually weakened. Currently, there is a situation of weak supply and demand, providing support for the bottom of copper prices.

The SHFE copper 2508 contract closed at 79,670 yuan/mt. If based on the most-traded BC copper 2508 contract price of 70,800 yuan/mt, its after-tax price is 80,004 yuan/mt. The price spread between the SHFE copper 2508 contract and the BC copper contract is -334, with the spread remaining inverted and decreasing compared to the previous day.