BC Copper Contract Edged Up 0.13%, Macro Interest Rate Cut Expectations Cooled, Limiting Gains [SMM BC Copper Review]

Today, the most-traded BC copper 2512 contract opened at 77,490 yuan/mt and closed higher. During the night session, after opening, BC copper maintained a "W" pattern, touched a low of 77,160 yuan/mt near the close, then rose sharply to a high of 77,850 yuan/mt, and finally settled at 77,730 yuan/mt, up 100 yuan/mt, a gain of 0.13%. Open interest fell to 4,020 lots, down 226 lots from the previous trading day, while trading volume dropped to 7,387 lots, down 6,745 lots. On the macro front, several US Fed officials opposed interest rate cuts, pushing the US dollar index higher and putting copper prices under pressure. On the fundamentals side, both imported and domestic supplies arrived, leading to loose overall market supply; demand side, as copper prices declined, downstream purchasing sentiment improved slightly.

SHFE copper contract 2512 settled at 87,300 yuan/mt. Based on the BC copper 2512 contract price of 77,730 yuan/mt, its post-tax price is 87,835 yuan/mt, resulting in a price spread of -535 yuan/mt between SHFE copper 2512 and BC copper contracts. The spread remained inverted and widened from the previous day.