BC Copper 2512 Contract Closed Higher as U.S. Government Reopening Eased Market Concerns [SMM BC Copper Review]

Today, the most-traded BC copper 2512 contract opened at 78,080 yuan/mt and closed higher for the day. In the night session, BC copper touched a high of 78,360 yuan/mt shortly after opening, then fluctuated downward, hitting a low of 77,220 yuan/mt before fluctuating rangebound and finally closing at 77,360 yuan/mt, down 440 yuan/mt, a decline of 0.57%. Open interest fell to 4,013 lots, down 131 lots from the previous trading day, while trading volume reached 5,717 lots, down 9 lots from the previous session. On the macro front, the U.S. federal government ended its shutdown, and ahead of economic data releases, the market remained cautious about further interest rate cuts. The US dollar index rose, putting copper prices under pressure. On the fundamentals side, high-quality copper remained tight, with overall supply constrained. Demand side, as copper prices fell, market trading sentiment improved.

SHFE copper contract 2512 closed at 86,900 yuan/mt. Based on the BC copper 2512 contract price of 77,360 yuan/mt, its after-tax price is 87,417 yuan/mt, resulting in a price spread of -517 yuan/mt between the SHFE copper 2512 contract and the BC copper contract. The spread remained inverted and narrowed compared to the previous day.