Today, the most-traded BC copper contract opened at 70,710 yuan/mt and closed lower. During the night session, copper prices fluctuated downward initially, touching a low of 70,590 yuan/mt before stabilizing in a rangebound pattern. After the daytime opening, the price center rose with bulls increasing positions during the morning session, reaching a high of 71,060 yuan/mt. In the afternoon session, the price center declined as bulls reduced positions, eventually closing at 70,720 yuan/mt, down 40 yuan/mt (0.06%). Open interest rose by 138 lots to 4,044 lots, while trading volume fell by 97 lots to 3,683 lots. On the macro front, market expectations for a US Fed rate cut in September continued to strengthen, but the cautious signals from Powell at Jackson Hole suggested a gradual easing path. This divergence between expectations and reality kept the US dollar under pressure while supporting copper prices. Geopolitically, signs of Russia-Ukraine negotiations weakened safe-haven demand, though uncertainty over Trump-era trade policies still capped copper prices. The US August ISM Manufacturing PMI, due at 22:00 tonight, warrants attention. Fundamentally, supply remained ample with both domestic and imported cargoes arriving. Demand side, high copper prices suppressed downstream purchase willingness.
SHFE copper 2510 contract closed at 79,660 yuan/mt. Based on the BC copper 2509 contract's closing price of 70,720 yuan/mt (post-tax equivalent: 79,914 yuan/mt), the price spread between SHFE copper 2510 and BC copper contracts stood at -254 yuan/mt, maintaining and widening the inverted spread.
