BC Copper 2512 contract fluctuated and closed down 1.69%, with macro pressure and a tug-of-war between sellers and buyers [SMM BC Copper Review]

Today, the most-traded BC copper 2512 contract opened at 78,060 yuan/mt, closing lower intraday as bears increased their positions. During the night session, BC copper initially fluctuated downward, touching a low of 77,030 yuan/mt, after which the center of copper prices gradually shifted upward. After the daytime session opened, prices fluctuated upward, reaching a high of 78,180 yuan/mt, then fluctuated downward and finally settled at 77,460 yuan/mt, down 1.69%. Open interest reached 4,246 lots, an increase of 628 lots from the previous trading day, while trading volume reached 14,132 lots. On the macro front, Fed Chairman Powell delivered hawkish remarks, expressing caution regarding the pace of interest rate cuts, which drove the US dollar index higher and subsequently put pressure on copper prices. On the fundamentals side, supply-wise, high-quality copper sources were tight, and non-registered supply remained relatively constrained. Demand-wise, the slight correction in copper prices stimulated some just-in-time procurement.

SHFE copper 2512 contract settled at 87,010 yuan/mt. Based on the BC copper 2512 contract price of 77,460 yuan/mt, its post-tax price is 87,529 yuan/mt. The price spread between SHFE copper 2512 and BC copper stood at -519, maintaining an inverted spread which narrowed compared to the previous day.