The most-traded BC copper 2511 contract closed up 4.23%. Concerns over the mine continued to drive copper prices higher [SMM BC Copper Review]

The most-traded BC copper 2511 contract opened at 75,270 yuan/mt today and closed lower intraday. BC copper opened higher with a gap, touching a low of 75,270 yuan/mt at the opening. It then rose continuously, approaching a high of 77,440 yuan/mt near the close, and finally settled at 77,200 yuan/mt, up 3,130 yuan, a gain of 4.23%. Open interest reached 5,370 lots, an increase of 457 lots from the previous trading day, while trading volume reached 8,561 lots, a decrease of 1,244 lots from the previous trading day. On the macro front, the continued shutdown of the US federal government has suspended the release of US government-related data, intensifying macro uncertainty. Additionally, concerns over mine supply continued to build, providing support for copper prices. On the fundamentals side, supply side, imports and domestic supply increased. Demand side, as copper prices broke through the high of 85,000 yuan/mt, downstream purchasing sentiment was significantly suppressed, and trading performance remained sluggish.

SHFE copper contract 2511 settled at 86,750 yuan/mt. Based on the BC copper 2509 contract price of 77,200 yuan/mt, its after-tax price is 87,236 yuan/mt, resulting in a price spread of -486 yuan/mt between SHFE copper 2509 contract and the BC copper contract. The spread remained inverted and widened compared to the previous day.