BC copper 2509 closed up 0.58%, with the price spread between SHFE copper and BC copper continuing to invert [SMM BC Copper Commentary]

Today, the most-traded BC copper 2509 contract opened at 70,330 yuan/mt and closed with a positive candlestick. During the night session, the most-traded BC copper 2509 contract touched a low of 70,330 yuan/mt at the beginning of the session, then fluctuated upward to reach an intraday high of 70,720 yuan/mt. During the day session, the center of copper prices gradually moved lower and eventually closed at 70,530 yuan/mt, with a gain of 0.58%. Open interest reached 4,115 lots, a decrease of 75 lots from the previous trading day, and trading volume reached 3,597 lots. On the macro front, the US July unadjusted CPI annual rate remained unchanged at 2.7%, while the core CPI annual rate rose to a five-month high of 3.1%. After the data release, traders became more bullish on a US Fed interest rate cut in September. Trump called for Powell to cut interest rates immediately, while US Treasury Secretary Bessent suggested considering a 50-basis-point interest rate cut in September. From the fundamental perspective, as the delivery date approaches on the supply side, domestic supply is tight, and it is expected that imported supply will supplement it later. On the demand side, due to copper prices fluctuating at highs, downstream procurement sentiment is suppressed.

The SHFE copper 2509 contract closed at 79,380 yuan/mt. If based on the most-traded BC copper 2509 contract price of 70,530 yuan/mt, its after-tax price is 79,698 yuan/mt. The price spread between the SHFE copper 2509 contract and the BC copper contract is -318, with the spread remaining inverted and increasing compared to the previous day.