BC Copper 2512 contract closed down 0.93%, hawkish remarks dampen interest rate cut expectations [SMM BC Copper Review]

Today, the most-traded BC copper 2512 contract opened at 76,980 yuan/mt and closed higher for the day. During the night session, the contract touched a low of 76,470 yuan/mt shortly after opening, then the price center rebounded to a high of 77,370 yuan/mt before fluctuating sideways and finally settling at 76,980 yuan/mt, down 720 yuan/mt, a decline of 0.93%. Open interest fell by 360 lots to 3,653 lots, while trading volume dropped by 200 lots to 5,517 lots. On the macro front, several US Fed officials sent hawkish signals regarding interest rate cuts, causing market expectations for further US Fed interest rate cuts to fade. The US dollar index edged up, putting copper prices under pressure. On the fundamentals side, lower arrivals of both imported and domestic copper kept market supply tight. As copper prices pulled back, market purchasing sentiment showed some recovery. As of November 17, SMM domestic copper cathode inventories decreased by 7,300 mt WoW to 193,800 mt.

The SHFE copper 2512 contract settled at 86,450 yuan/mt. Based on the BC copper 2512 contract price of 76,980 yuan/mt, its after-tax price would be 86,987 yuan/mt, resulting in a price spread of -537 yuan/mt between the SHFE copper 2512 contract and the BC copper contract. The spread remained inverted and widened compared to the previous day.