The most-traded BC copper 2511 contract closed lower, with weak consumption curbing upside room. [SMM BC Copper Review]

Today, the most-traded BC copper 2511 contract opened at 77,620 yuan/mt and closed lower for the day. During the night session, BC copper opened and touched a high of 78,240 yuan/mt, after which copper prices trended downward throughout the session. Approaching the close, it touched a low of 76,170 yuan/mt and finally settled at 76,380 yuan/mt, down 180 yuan, a decline of 0.24%. Open interest decreased to 4,809 lots, down 561 lots from the previous trading day, while trading volume increased to 15,892 lots, up 7,331 lots from the previous trading day. On the macro front, Williams supported further interest rate cuts, and traders' expectations for US Fed interest rate cuts increased, providing support for copper prices. Meanwhile, the potential release of a manually compiled CPI report during the government shutdown eased uncertainty in the US market, which was positive for copper prices. On the fundamentals side, high copper prices significantly suppressed consumption sentiment, with downstream users mainly maintaining just-in-time procurement.

SHFE copper contract 2511 settled at 85,910 yuan/mt. Based on the BC copper 2509 contract price of 76,380 yuan/mt, its post-tax price is 86,309 yuan/mt. The price spread between SHFE copper 2509 contract and the BC copper contract was -399 yuan/mt; the spread remained inverted and narrowed compared to the previous day.