BC Copper's Most-Traded Contract Closed Up 0.31% with Open Interest Declining; US Fed Rate Decision Approaches as Market Maintains Wait-and-See Stance [SMM BC Copper Review]

Today, the most-traded BC copper contract opened at 71,750 yuan/mt and closed lower intraday. In the night session, BC copper fluctuated upward after opening, touched a high of 72,030 yuan/mt, then declined as bears increased positions. During the day session, after opening and touching a low of 71,580 yuan/mt, the center of copper prices fluctuated upward, eventually closing at 71,860 yuan/mt, up 220 yuan/mt, a gain of 0.31%. Open interest fell to 4,956 lots, down 191 lots from the previous trading day. Trading volume dropped to 3,911 lots, down 595 lots from the previous trading day. On the macro front, geopolitical conflicts escalated again, with Ukrainian drone attacks on Russia's largest western port and Trump announcing sanctions against Russia, pushing international oil prices higher and supporting copper prices. Notably, with the upcoming US Fed interest rate meeting, the market widely awaits the extent of the interest rate cut, while the US dollar index maintained a fluctuating trend, supporting copper prices to fluctuate at highs. On the fundamentals side, supply side, imported supply continued to supplement the market, but domestic supply additions were limited. Demand side, copper prices fluctuating at highs continued to suppress procurement sentiment, with downstream buying sentiment remaining weak.

SHFE copper 2510 contract closed at 80,940 yuan/mt. Based on the BC copper 2510 contract price of 71,750 yuan/mt, its after-tax price is 81,078 yuan/mt, resulting in a price spread of 138 yuan/mt between the SHFE copper 2510 contract and the BC copper contract. The spread remained inverted and widened.