BC copper night session hit bottom and then rebounded, with SHFE copper price ratio remaining stable [SMM BC Copper Commentary]

Today, the most-traded BC copper 2509 contract opened at 69,570 yuan/mt and closed with a positive daily candle. During the night session, the most-traded BC copper 2509 contract initially touched a high of 69,660 yuan/mt, before gradually declining to a low of 69,390 yuan/mt. During the day session, copper prices gradually rebounded and eventually closed at 69,630 yuan/mt, marking a 0.42% increase. Open interest reached 4,552 lots, a decrease of 129 lots from the previous trading day, while trading volume stood at 1,725 lots. From a macro perspective, US Fed official Kashkari expressed support for two interest rate cuts this year, which heightened market expectations for rate cuts and provided a boost to copper prices. On the fundamental front, supply-side inventory reductions were observed, with LME copper inventories decreasing by 125 mt MoM to 156,000 mt. As of August 7, SMM copper inventories in major regions across China decreased by 3,900 mt WoW to 132,000 mt. On the demand side, positive signals of improved consumption emerged. Meanwhile, it is crucial to note that the reciprocal tariff will officially take effect at 12:00 midnight Beijing time tonight.

The SHFE copper 2509 contract closed at 78,460 yuan/mt. If based on the most-traded BC copper 2509 contract price of 69,630 yuan/mt, the after-tax price would be 78,681 yuan/mt. The price spread between the SHFE copper 2509 contract and the BC copper contract stood at -221, maintaining an inverted spread and unchanged from the previous day.