BC copper fluctuated downward during the day, and the price spread between SHFE copper and BC copper narrowed [SMM BC copper commentary]

Today, the most-traded BC copper 2509 futures contract opened at 69,240 yuan/mt and closed in the red. During the night session, the most-traded BC copper 2509 futures contract fluctuated downward at the beginning of the session. During the day session, it rose to the intraday high of 70,160 yuan/mt upon opening, and then the center of copper prices gradually moved lower, eventually touching the intraday low of 69,140 yuan/mt at the end of the session, with a decline of 1.41%. Open interest reached 4,901 lots, an increase of 942 lots from the previous trading day, and trading volume reached 6,389 lots. On the macro side, the US Fed maintained interest rates unchanged as scheduled on Wednesday. Meanwhile, Trump issued an announcement on Wednesday, declaring that a 50% tariff would be imposed on all semi-finished copper products entering the US starting from August 1, with only imported copper cathode being excluded. US copper prices plummeted, dragging down LME copper and SHFE copper prices. On the fundamental side, as of July 31, SMM copper inventories in major regions across the country fell by 1,000 mt from Monday to 119,300 mt, mainly due to a decrease in imports and arrivals at smelters. On the demand side, it was dragged down by the off-season at month-end, and end-use consumption weakened.

The most-traded SHFE copper 2509 futures contract closed at 78,040 yuan/mt. If based on the most-traded BC copper 2509 futures contract price of 69,140 yuan/mt, its after-tax price would be 78,128 yuan/mt. The price spread between the SHFE copper 2509 futures contract and the BC copper futures contract was -88, maintaining an inverted spread and decreasing from the previous day.