BC Copper Rises First Then Falls Intraday, SHFE Copper Price Spread Inversion Sustained and Widened [SMM BC Copper Commentary]

Today, the most-traded BC copper contract opened at 71,730 yuan/mt and closed lower intraday. During the night session, BC copper rose continuously after opening, touching a high of 72,470 yuan/mt. After the daytime session opened, the price center gradually declined as bears reduced positions, eventually closing at 71,830 yuan/mt, up 50 yuan/mt, a gain of 0.07%. Open interest reached 4,855 lots, an increase of 199 lots from the previous trading day. Trading volume reached 5,428 lots, an increase of 1,517 lots from the previous trading day. On the macro front, expectations for a US Fed interest rate cut in September continued to heat up, while the market closely watched subsequent rate cut actions. The US dollar index continued to fall, providing some support for copper prices. On the fundamentals side, high copper prices continued to suppress downstream purchasing enthusiasm, with consumption remaining weak.

SHFE copper contract cu2510 closed at 80,880 yuan/mt. Based on the BC copper cu2510 contract price of 71,730 yuan/mt, its after-tax price is 81,055 yuan/mt. The price spread between SHFE copper cu2510 and the BC copper contract was -175 yuan/mt, with the spread remaining inverted and widening further.