The Most-Traded BC Copper Contract Fluctuated Higher and Closed in Positive Territory, Macro Tailwinds Supported Copper Prices [SMM BC Copper Review]

Today, the most-traded BC copper contract opened at 70,650 yuan/mt and closed lower in the day session. During the night session, SHFE copper prices fluctuated downward after opening, touching a low of 70,520 yuan/mt before rising. In the morning trading session, prices pulled back after brief fluctuations, then stabilized as bears reduced positions. In the afternoon session, prices climbed to a high of 71,030 yuan/mt amid increased buying by bulls, before retreating near the close to settle at 70,790 yuan/mt, up 530 yuan/mt (0.75%). Open interest rose 151 lots to 3,906, while trading volume fell 1,089 lots to 3,780. On the macro front, geopolitical tensions persisted as Houthi forces attacked UN agencies in Yemen and the Russia-Ukraine conflict continued. Former US President Trump claimed prices had "dropped significantly" with minimal inflation, while expectations for US Fed interest rate cuts and escalating geopolitical risks supported copper prices. Supply side, China's social inventory rose 5,000 mt WoW to 132,100 mt, indicating increased supply. Demand side, downstream purchase willingness remained weak as prices surged intraday.

SHFE copper 2510 contract settled at 79,780 yuan/mt. Based on BC copper 2509's closing price of 70,790 yuan/mt (post-tax equivalent: 79,993 yuan/mt), the price spread between SHFE copper 2510 and BC copper contracts stood at -213 yuan/mt, maintaining an inverted but narrowing gap.