Weak Demand and Loose Supply Weigh on Copper Prices, While a Weaker US Dollar Provides Support [SMM BC Copper Review]

Today, the most-traded BC copper 2510 contract opened at 79,690 yuan/mt and closed higher. During the night session, BC copper initially fluctuated downward to test a low of 70,620 yuan/mt before rising again. After a brief pullback following the daytime opening, copper prices surged to touch a high of 71,000 yuan/mt, then fluctuated downward to finally settle at 70,790 yuan/mt, up 0.01%. Open interest stood at 4,151 lots, down 91 lots from the previous session, while trading volume reached 3,586 lots. On the macro front, last Friday's US non-farm payrolls data fell far below expectations, further strengthening market expectations for a US Fed interest rate cut and driving the US dollar to extend its decline, providing bullish support for copper prices. Additionally, PT Freeport Indonesia suspended all mining operations at its Grasberg mine after a wet ore material outflow incident, prioritizing the evacuation of trapped personnel. Fundamentally, imported copper supplies continued to replenish the market, keeping overall supply loose. Demand side, weak conditions persisted without significant improvement.

SHFE copper 2510 contract settled at 79,650 yuan/mt. Based on the BC copper 2510 contract's price of 70,790 yuan/mt (post-tax equivalent: 79,992 yuan/mt), the price spread between SHFE copper 2510 and BC copper contracts stood at -342, maintaining an inverted spread that widened from the previous day.