BC Copper Fluctuated and Closed Slightly Higher, US Government Agreement Boosts Sentiment [SMM BC Copper Review]

Today, the most-traded BC copper 2512 contract opened at 77,160 yuan/mt, closing higher intraday with an increase in positions held by bulls. In the night session, BC copper initially fluctuated downward, testing a low of 76,820 yuan/mt, then surged straight to a high of 77,500 yuan/mt during the day session. Subsequently, the center of copper prices gradually shifted downward, eventually closing at 77,140 yuan/mt, up 0.39%. Open interest reached 3,867 lots, an increase of 365 lots compared to the previous trading day, while trading volume reached 4,303 lots. On the macro front, Senate Republican Leader Thune stated that an agreement had been reached to ensure the passage of a government shutdown deal, allowing the US government to resume operations, which boosted market sentiment and supported copper prices. On the fundamentals side, domestic supplies arrived gradually, leading to relatively loose overall supply. Demand side, purchasing sentiment declined as copper prices pulled back, resulting in weak demand.

SHFE copper 2512 contract closed at 86,630 yuan/mt. Based on the BC copper 2512 contract price of 77,140 yuan/mt, its after-tax price is 87,168 yuan/mt. The price spread between SHFE copper 2512 and BC copper was -538, maintaining an inverted spread which widened compared to the previous day.