BC Copper 2510 Night Session Rises After Testing Lower, Supply-Demand Weakness and Narrowing Price Spread Underpinned by Macro Bullish Factors [SMM BC Copper Commentary]

Today, the most-traded BC copper 2510 contract opened at 70,740 yuan/mt and closed higher. In the night session, BC copper initially fell to 70,640 yuan/mt, then entered a sideways consolidation. After the daytime session opened, the center of copper prices gradually moved upward, approaching a high of 71,040 yuan/mt near the end of the session, and finally closed at 70,910 yuan/mt, up 0.14%. Open interest reached 4,389 lots, an increase of 238 lots from the previous trading day, while trading volume reached 3,699 lots. On the macro front, non-farm payrolls data were revised down by 900,000, exceeding expectations and strengthening expectations for an interest rate cut. The EU plans to impose additional sanctions on Russia, pushing up crude oil prices, which overall supports copper prices. On the fundamentals side, supply side, imported supplies have not yet been fully digested, and the willingness to sell is relatively strong, making market supply slightly loose. Demand side, copper prices maintained narrow fluctuations, and downstream purchase willingness remained weak.

SHFE copper contract 2510 closed at 79,790 yuan/mt. Based on the BC copper 2510 contract price of 70,910 yuan/mt, its after-tax price is 80,128 yuan/mt. The price spread between SHFE copper 2510 and BC copper contracts was -338, maintaining an inverted spread that narrowed compared to the previous day.