The Most-Traded BC Copper 2510 Contract Closed Higher Intraday, US Fed PCE Data Becomes Market Focus [SMM BC Copper Review]

Today, the most-traded BC copper 2510 contract opened at 73,050 yuan/mt, closing higher with long positions being reduced. During the night session, BC copper initially rose, briefly touching a high of 73,740 yuan/mt, before copper prices pulled back and maintained considerable fluctuations. After the daytime session opened, copper prices continued to fluctuate considerably, eventually closing at 73,190 yuan/mt, up 0.37%. Open interest fell to 2,624 lots, down 421 lots from the previous trading day, while trading volume reached 5,553 lots. Current market sentiment is influenced by multiple intertwined factors: on one hand, panic triggered by the sudden incident at the Grasberg copper mine in Indonesia has not yet fully subsided; on the other hand, the China Nonferrous Metals Industry Association recently held a meeting explicitly opposing "involutionary" competition in the copper smelting industry. Both types of news have heightened market concerns over future copper supply. Additionally, market focus has shifted to the US Fed PCE data to be released later today. On the fundamentals, supply side, as the National Day holiday approaches, some enterprises adjusted their production pace for pre-holiday stockpiling, slightly easing short-term market supply pressure. Demand side, high copper prices have dampened downstream enterprises' purchase willingness, and actual demand release fell short of expectations.

SHFE copper contract 2510 closed at 82,470 yuan/mt. Based on the BC copper 2510 contract price of 73,190 yuan/mt, its post-tax price is 82,704 yuan/mt, resulting in a price spread of -234 between SHFE copper 2510 and BC copper. The spread remained inverted and narrowed compared to the previous day.