BC Copper 2509 contract saw a slight increase, with the tug-of-war between sellers and buyers dominating the trend [SMM BC Copper Comment]

Today, the most-traded BC copper 2509 contract opened at 69,640 yuan/mt and closed higher on the day. During the night session, BC copper opened lower but moved higher, probing a low of 69,570 yuan/mt before fluctuating upward to reach a high of 69,980 yuan/mt, after which the price center declined. After the daytime opening, the center gradually fell as bulls reduced their positions in the morning trading session. In the afternoon, prices fluctuated considerably and closed at 69,740 yuan/mt, up 40 yuan/mt or 0.06%. Open interest stood at 3,972 lots, down 150 lots from the previous trading day, while trading volume was 2,264 lots, a decrease of 287 lots. On the macro front, US economic data were mixed; the August composite PMI hit an eight-month high, but initial jobless claims rose significantly. The US Fed remains divided over cutting interest rates. Fed Chairman Jerome Powell will deliver a key speech at 10:00 pm tonight. Amid growing calls for political intervention and the challenge of balancing inflation and employment, attention will be on how Powell sets the tone for policy direction in September and beyond. Fundamentally, on the supply side, imports continued to arrive, but domestic supply decreased. Demand side, downstream purchasing sentiment remained driven by essential needs.

The SHFE copper 2509 contract closed at 78,690 yuan/mt. If the BC copper 2509 contract is at 69,740 yuan/mt, its post-tax price would be 78,806 yuan/mt, resulting in a price difference of -116 yuan/mt between the SHFE and BC copper 2509 contracts, with the spread remaining inverted and narrowing slightly from the previous day.