BC Copper 2512 contract closed down 1.56%, US Fed hawkish expectations weigh on copper prices [SMM BC Copper Review]

Today, the most-traded BC copper 2512 contract opened at 77,710 yuan/mt and closed lower for the day. In the night session, after opening, the contract briefly touched a high of 77,840 yuan/mt before falling sharply, approaching a low of 76,040 yuan/mt near the end of the session, and finally settled at 76,280 yuan/mt, down 1,210 yuan/mt, a decline of 1.56%. Open interest fell to 3,939 lots, down 81 lots from the previous trading day, while trading volume dropped to 6,906 lots, down 481 lots. On the macro front, several officials expressed openness to further interest rate cuts by the US Fed, but market expectations for another rate cut this year cooled, and the US dollar index continued its upward trend, putting copper prices under pressure. On the fundamentals, supply of high-quality copper remained tight, with market supply narrowing during the day; on the demand side, copper prices fell below the 86,000 yuan/mt threshold, boosting downstream purchasing sentiment during the session.

The SHFE copper 2512 contract settled at 85,740 yuan/mt. Based on the BC copper 2512 contract price of 76,280 yuan/mt, its post-tax price is 86,196 yuan/mt, resulting in a price spread of -456 yuan/mt between the SHFE copper 2512 contract and the BC copper contract. The spread remained inverted and narrowed compared to the previous day.