US Fed Rate Decision Nears, Sentiment Cautious; BC Copper the Most-Traded Contract Closes Down 0.79% [SMM BC Copper Review]

Today, the most-traded BC copper contract opened at 71,940 yuan/mt and closed higher in the day session. During the night session, it initially touched a high of 72,130 yuan/mt. After the day session opened, copper prices pulled back as bears increased positions, hitting a low of 71,330 yuan/mt, and finally closed at 71,450 yuan/mt, down 570 yuan/mt, a decrease of 0.79%. Open interest fell to 4,564 lots, down 261 lots from the previous trading day. Trading volume decreased to 5,365 lots, down 63 lots from the previous trading day. On the macro front, the US Fed will announce its interest rate decision early tomorrow, and the market is closely watching for signals of future monetary easing, with overall sentiment remaining cautious and the US dollar index edging higher. On the fundamentals side, although copper prices pulled back, they remained at a relatively high level, downstream procurement sentiment rebounded weakly, and consumption performance was sluggish. Spot copper supply was relatively sufficient during the day, and due to weak demand, most suppliers lowered prices to ensure smooth shipments.

SHFE copper 2510 contract closed at 80,560 yuan/mt. Based on the BC copper 2510 contract price of 71,450 yuan/mt, its after-tax price is 80,739 yuan/mt, resulting in a price spread of -179 yuan/mt between the SHFE copper 2510 contract and the BC copper contract. The spread remained inverted and widened further.