BC Copper 2511 Bottomed Out and Closed Higher, Powell's Speech Bullish for Copper Prices [SMM BC Copper Review]

Today, the most-traded BC copper 2511 contract opened at 74,820 yuan/mt, closing higher with short positions being reduced. In the night session, BC copper initially dipped to 74,570 yuan/mt, after which copper prices gradually shifted upward. Following the daytime opening, prices fluctuated upward, approaching a high of 76,450 yuan/mt near the session close, and finally settled at 76,300 yuan/mt, up 0.14%. Open interest reached 4,679 lots, down 225 lots from the previous trading day, while trading volume reached 12,869 lots. On the macro front, Fed Chairman Powell noted tightening liquidity in the money market and a rebound in downside risks in the labor market, strengthening market expectations for interest rate cuts, which provided support for copper prices. On the fundamentals side, supply saw stable arrivals of both imported and domestic material, with a steady supply rhythm. Demand side, due to strong wait-and-see sentiment, overall consumption showed no improvement and failed to provide effective support for the time being.

Last session, the most-traded SHFE copper 2511 contract settled at 85,800 yuan/mt. Based on the BC copper 2510 contract price of 76,300 yuan/mt, its after-tax price is 86,219 yuan/mt, resulting in a price spread of -419 between SHFE copper 2511 and BC copper. The spread remained inverted and widened compared to the previous day.