BC Copper 2510 closed higher, up 0.59%, as the market focuses on tonight's CPI data [SMM BC Copper Review]

Today, the most-traded BC copper contract 2510 opened at 70,980 yuan/mt and closed higher in the day session. In the night session, BC copper opened at 70,980 yuan/mt, touched the low, then the center of copper prices gradually moved upward, testing 71,360 yuan/mt. After the day session opened, prices pulled back, then moved sideways toward the end of the session, finally closing at 71,240 yuan/mt, up 0.59%. Open interest reached 4,378 lots, down 11 lots from the previous trading day, while trading volume reached 3,550 lots. On the macro front, US August PPI data came in well below market expectations, indicating easing wholesale inflation pressures and reducing expectations for a sharp rise in consumer prices in the coming months. This pushed the US dollar index lower in the night session, supporting copper prices. Market attention has turned to tonight's CPI data. On the fundamentals, imported supplies continued to supplement the market, while domestic arrivals remained normal without an increase ahead of the delivery date. Demand side, with copper prices again breaking through 80,000 yuan/mt, overall market procurement sentiment continued to weaken. Inventory side, as of Thursday, September 11, SMM copper inventories in mainstream regions across China decreased by 2,600 mt from Monday to 144,300 mt.

SHFE copper contract 2510 closed at 80,130 yuan/mt. Based on BC copper contract 2510 at 71,240 yuan/mt, its after-tax price is 80,501 yuan/mt. The price spread between SHFE copper contract 2510 and BC copper contract stood at -371, remaining inverted and widening from the previous day.