BC Copper 2512 contract closed down 0.77%, US Fed interest rate cut complexity weighs on copper prices [SMM BC Copper Review]

Today, the most-traded BC copper 2512 contract opened at 76,950 yuan/mt and closed higher for the day. In the night session, after opening, the contract initially touched a high of 77,200 yuan/mt, but then, as bulls reduced their positions, the center of copper prices declined all the way, approaching the session end with a low of 76,180 yuan/mt, and finally settled at 76,320 yuan/mt, down 590 yuan/mt, a decrease of 0.77%. Open interest fell to 3,329 lots, a decrease of 231 lots from the previous trading day, while trading volume dropped to 3,931 lots, also down 231 lots from the previous session. On the macro front, US non-farm payrolls data grew more than expected, yet the unemployment rate hit a four-year high, complicating the US Fed's December interest rate decision, which pushed the US dollar index higher and kept copper prices under pressure. On the fundamentals side, warrant outflows eased the tight supply situation in the market, and as prices fell, downstream purchasing sentiment continued to recover.

SHFE copper contract 2512 settled at 85,650 yuan/mt. Based on the BC copper 2512 contract price of 76,320 yuan/mt, its post-tax price is 86,242 yuan/mt, resulting in a price spread of -592 yuan/mt between the SHFE copper 2512 contract and the BC copper contract. The spread remained inverted and widened compared to the previous day.