Macro and Fundamentals Jointly Exert Pressure, the Most-Traded BC Copper 2511 Contract Closes Slightly Lower [SMM BC Copper Review]

Today, the most-traded BC copper 2511 contract opened at 75,790 yuan/mt and closed higher for the day. During the night session, after opening, copper prices' center moved downward, testing a low of 75,060 yuan/mt, then fluctuated upward throughout the session, approaching the session end to test a high of 75,970 yuan/mt, and finally settled at 75,960 yuan/mt, down 70 yuan/mt, a decline of 0.09%. Open interest reached 4,367 lots, a decrease of 129 lots compared to the previous trading day, while trading volume reached 7,509 lots, an increase of 1,165 lots compared to the previous trading day. On the macro front, Trump stated he will visit China early next year, but the Ministry of Foreign Affairs did not give a clear response; this news sparked market optimism about a trade agreement, boosting the US dollar and putting copper prices under pressure. On the fundamentals side, imported supplies continued to arrive during the day, state-owned supply remained stable, overall supply was loose, while purchasing sentiment on the consumption side did not show a significant rebound.

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