BC Copper 2509 Contract Drop Slightly High-Quality Copper Supply is Tight and Demand Awaits Release [SMM BC Copper Commentary]

Today, the most-traded BC copper 2509 contract opened at 69,910 yuan/mt and closed higher during the day. In the night session, the BC copper initially fluctuated downward, reaching a low of 69,880 yuan/mt, followed by considerable fluctuations. After the daytime opening, copper prices fluctuated upward, touching an intraday high of 70,080 yuan/mt, and finally closed at 69,980 yuan/mt, with a decline of 0.28%. The open interest reached 3,949 lots, an increase of 46 lots from the previous trading day, and the trading volume was 1,631 lots. On the macro front, Ukraine sought to secure billions of US dollars in military purchases for security guarantees, Trump promoted a meeting between Russian and Ukrainian leaders and trilateral talks, and Hamas accepted a new ceasefire proposal for Gaza. There were no new factors affecting copper prices, and attention should be paid to the actual progress of related developments. Fundamentally, on the supply side, LME inventory decreased by 200 mt to 147,925 mt. Although there was some imported supply, overall supply remained relatively loose, but high-quality copper supply was still tight. On the demand side, downstream transactions were weak, and procurement demand did not show any growth.

The SHFE copper 2509 contract closed at 78,890 yuan/mt. If the BC copper 2509 contract was at 69,980 yuan/mt, its post-tax price would be 79,077 yuan/mt. The price spread between the SHFE copper 2509 contract and the BC copper 2509 contract was -187, maintaining an inverted spread that narrowed compared to the previous day.