BC Copper 2512 contract edged down slightly, US dollar index rose and continued to weigh on copper prices [SMM BC Copper Review]

Today, the most-traded BC copper 2512 contract opened at 75,790 yuan/mt and closed lower intraday. During the night session, BC copper fluctuated rangebound after opening, then fell straight to test a low of 75,650 yuan/mt, before testing a high of 76,510 yuan/mt near the session close, eventually settling at 76,230 yuan/mt, down 50 yuan/mt, a decline of 0.07%. Open interest decreased to 3,703 lots, down 236 lots from the previous trading day, while trading volume fell to 6,864 lots, down 42 lots. On the macro front, the continued shutdown of the US federal government and policy uncertainty drove safe-haven sentiment in the market. Meanwhile, the US Fed remained divided on expectations for interest rate cuts, and the US dollar index broke through the 100 mark, putting copper prices under pressure. On the fundamentals side, supply of high-quality copper remained tight, while standard-quality copper and non-registered sources were relatively ample. On the demand side, as copper prices fell sharply, downstream purchasing sentiment continued to recover.

SHFE copper contract 2512 settled at 85,670 yuan/mt. Based on the BC copper 2512 contract price of 76,230 yuan/mt, its after-tax price is 86,140 yuan/mt. The price spread between SHFE copper 2512 and BC copper contracts was -470 yuan/mt, maintaining an inverted spread that widened from the previous day.