A weaker US dollar boosted copper prices, with the most-traded BC copper contract closing up 1.48% [SMM BC Copper Review]

Today, the most-traded BC copper 2511 contract opened at 75,820 yuan/mt and closed higher intraday. During the night session, after opening, it touched a low of 75,700 yuan/mt, then fluctuated upward throughout the session, approaching the close to hit a high of 76,740 yuan/mt, and finally settled at 76,660 yuan/mt, up 1,120 yuan/mt, a gain of 1.48%. Open interest reached 4,541 lots, an increase of 174 lots from the previous trading day, while trading volume reached 8,629 lots, up 1,120 lots from the previous session. On the macro front, the US government shutdown persisted, and the US Senate rejected a temporary funding bill for the twelfth time, putting pressure on the US dollar and benefiting copper prices. Additionally, escalating tensions between Russia and Ukraine and heightened geopolitical conflicts spurred market risk-aversion sentiment, further supporting copper prices. On the fundamentals side, imported supply arrivals remained stable, while state-owned supply decreased, leading to an overall narrowing of supply. However, persistently high copper prices continued to dampen purchasing sentiment on the consumption side.

The SHFE copper 2511 contract settled at 86,030 yuan/mt. Based on the BC copper 2511 contract price of 76,660 yuan/mt, its post-tax price is 86,626 yuan/mt, resulting in a price spread of -596 yuan/mt between the SHFE copper 2511 contract and the BC copper contract. The spread remained inverted and widened compared to the previous day.