US Shutdown Risk Eases, BC Copper the Most-Traded 2511 Contract Edges Up [SMM BC Copper Review]

Today, the most-traded BC copper 2511 contract opened at 75,720 yuan/mt and closed higher for the day. During the night session, BC copper initially touched a low of 75,760 yuan/mt, after which the center of copper prices fluctuated upward; nearing the end of the session, it reached a high of 76,360 yuan/mt, eventually closing at 75,960 yuan/mt, up 240 yuan, a gain of 0.32%. Open interest reached 4,496 lots, an increase of 86 lots from the previous trading day, while trading volume reached 6,344 lots, a decrease of 4,966 lots from the previous trading day. On the macro front, as China-US trade relations eased and White House officials indicated the US government shutdown could end this week, market uncertainty eased, supporting a slight rise in copper prices. On the fundamentals side, both imported and domestic supplies arrived, leading to generally loose supply, while on the consumption side, persistently high copper prices continued to dampen purchasing sentiment.

SHFE copper contract 2511 closed at 85,380 yuan/mt. Based on the BC copper 2511 contract price of 75,960 yuan/mt and its post-tax price of 85,835 yuan/mt, the price spread between SHFE copper 2511 and the BC copper contract was -455 yuan/mt; the spread remained inverted and widened compared to the previous day.