The most-traded BC copper 2509 contract closed down 0.67%, with bearish macro sentiment and mediocre demand [SMM BC Copper Commentary]

Today, the most-traded BC copper 2509 contract opened at 70,380 yuan/mt and closed in the red. During the night session, BC copper initially touched a high of 70,500 yuan/mt, before copper prices fluctuated downward. After the day session opened, the center of copper prices gradually fluctuated considerably, reaching the intraday low of 70,020 yuan/mt near the end of the session, and finally closed at 70,070 yuan/mt, down 0.67%. Open interest reached 4,086 lots, a decrease of 26 lots from the previous trading day, and trading volume reached 3,216 lots. On the macro side, the US government and the International Energy Agency issued bearish supply guidance. Additionally, the market paid attention to Trump's statement that "Putin will face 'serious consequences' if he obstructs peace in Ukraine," causing oil prices to fall to a new low in more than two months on Wednesday. On the fundamental side, on the supply side, LME inventories decreased by 25 mt to 155,800 mt. As of August 14, SMM copper inventories in major regions across China decreased by 6,000 mt from Monday to 125,600 mt. Demand side, however, showed a mediocre performance.

The SHFE copper 2509 contract closed at 78,950 yuan/mt. If based on the BC copper 2509 contract price of 70,070 yuan/mt, its after-tax price would be 79,179 yuan/mt. The price spread between the SHFE copper 2509 contract and the BC copper contract was -229, maintaining an inversion and narrowing compared to the previous day.