The most-traded BC copper contract opened at 78,820 yuan/mt today and closed lower. In the night session, BC copper moved downwards after a higher opening, dipped to a low of 69,780 yuan/mt, then fluctuated upward, maintaining a sideways movement between 69,780 yuan/mt and 70,000 yuan/mt overnight. During the day session, the price center gradually rose as bulls increased positions, then declined with bears adding positions, touching a high of 70,160 yuan/mt near the close before finally settling at 70,060 yuan/mt, down 280 yuan/mt, a gain of 0.4%. On the macro front, after New York Fed President Williams signaled potential interest rate cuts, traders' expectations for US Fed interest rate cuts strengthened, weakening the US dollar and supporting copper prices. The ongoing Russia-Ukraine conflict fueled geopolitical risks, triggering market risk-off sentiment and weighing on copper prices. Additionally, key US data including initial jobless claims and the PCE index are expected to be released soon, with focus on their impact on the US dollar index. On the supply side, LME inventory rose by 1,850 mt to 157,950 mt, but domestic high-quality copper resources remained tight. Demand side, the drop in the price center during the day improved procurement sentiment.
SHFE copper 2510 contract closed at 78,930 yuan/mt. Based on the BC copper 2510 contract price of 70,060 yuan/mt, its after-tax price was 79,168 yuan/mt, resulting in a price spread of -238 yuan/mt between the SHFE copper 2510 contract and the BC copper contract, maintaining an inverted spread that widened from the previous day.
