BC Copper Night Session Rallied Higher and Fluctuated, Closing Up 1.14%; US Government Shutdown Concerns Support Copper Prices [SMM BC Copper Review]

Today, the most-traded BC copper 2511 contract opened at 73,270 yuan/mt and closed lower intraday. During the night session, BC copper opened at 73,270 yuan/mt, hitting the session low, then rose continuously to a high of 74,610 yuan/mt before hovering at highs, eventually closing at 73,870 yuan/mt, up 830 yuan or 1.14%. Open interest reached 4,913 lots, an increase of 24 lots from the previous trading day, while trading volume reached 9,805 lots, up 1,983 lots. On the macro front, affected by the potential US government shutdown, Senate Republicans will vote on a bill to avoid a government shutdown on Tuesday, while Democrats rejected a short-term spending bill. The US dollar index fluctuated downward, breaking below the 98 level, supporting copper prices. Meanwhile, the US Bureau of Labor Statistics announced it would suspend data releases during a government shutdown, increasing uncertainty in the US market and further supporting copper prices. On the fundamentals side, supply-wise, imported supply remained stable, while domestic supply continued to be limited. Demand side, with copper prices breaking above 83,000 yuan/mt, downstream market transactions were mediocre, with just-in-time procurement being the main activity.

SHFE copper contract 2511 closed at 83,110 yuan/mt. Based on the BC copper 2509 contract price of 73,870 yuan/mt, its post-tax price is 83,473 yuan/mt, resulting in a price spread of -363 yuan/mt between SHFE copper 2509 and BC copper contracts. The spread remained inverted and widened compared to the previous day.