BC Copper 2512 contract edged up only 0.01%, with macro fundamentals lacking bullish support [SMM BC Copper Review]

Today, the most-traded BC copper 2512 contract opened at 76,800 yuan/mt and closed higher for the day. In the night session, BC copper trended downward after opening, touched a low of 76,150 yuan/mt, then fluctuated upward, approaching a high of 76,610 yuan/mt near the session's end, and finally settled at 76,500 yuan/mt, up 10 yuan/mt, a gain of 0.01%. Open interest fell to 3,440 lots, down 169 lots from the previous trading day, while trading volume dropped to 4,305 lots, down 471 lots. On the macro front, data including a decline in nonfarm payrolls and the unemployment rate hitting a four-year high indicated weakness in the US October job market. Meanwhile, US Fed officials were divided on interest rate cut policies, with most adopting a cautious stance toward future rate cuts, putting copper prices under pressure. On the fundamentals side, arrivals of state-owned and imported material improved, easing the supply deficit, while downstream purchasing sentiment picked up.

SHFE copper contract 2512 settled at 85,940 yuan/mt. Based on the BC copper 2512 contract price of 76,500 yuan/mt, its post-tax price is 86,445 yuan/mt, resulting in a price spread of -505 yuan/mt between SHFE copper 2512 and BC copper contracts. The spread remained inverted and widened compared to the previous day.