BC copper closed positive, rising slightly, while copper inventories continued to decline due to reduced arrivals [SMM BC Copper Commentary]

Today, the most-traded BC copper 2508 contract opened at 70,850 yuan/mt, closing the day with a negative candlestick, supported by the lower Bollinger Band at the bottom. During the night session, the most-traded BC copper 2508 contract initially surged to the intraday high of 71,190 yuan/mt, then fluctuated considerably. During the day session, it opened high at 77,180 yuan/mt, fluctuated downward, and touched the intraday low of 70,610 yuan/mt near the close, ultimately closing at 70,660 yuan/mt, down 0.08%. The open interest stood at 3,983 lots, a decrease of 15 lots from the previous trading day, with trading volume reaching 4,857 lots. On the macro front, the US Treasury Secretary referred to August 1 as a "hard deadline," while Trump's proposal to impose a 15% reciprocal tariff on Japan exacerbated tariff concerns. Meanwhile, he advocated for a 3 percentage point interest rate cut and mentioned the possibility of Powell's departure, with the Fed Governor emphasizing the independence of monetary policy. On the fundamental side, domestic supply was replenished, coupled with a slight decrease in LME inventory to 124,825 mt. However, high copper prices suppressed downstream procurement sentiment, and the loose supply-demand pattern weighed on copper prices.

The SHFE copper 2508 contract closed at 79,520 yuan/mt. If based on the most-traded BC copper 2508 contract price of 70,660 yuan/mt, its after-tax price would be 79,845 yuan/mt. The price spread between the SHFE copper 2508 contract and the BC copper contract was -325, maintaining an inversion and decreasing from the previous day.