BC Copper 2512 Contract Fluctuated and Closed Higher, Expectations for US Fed Interest Rate Cut Provided Support [SMM BC Copper Review]

Today, the most-traded BC copper 2512 contract opened at 76,760 yuan/mt. It fluctuated downward at the start of the session, touching a low of 76,520 yuan/mt, after which the center of copper prices gradually shifted upward. Following the daytime session opening, the upward trend continued, reaching a high of 77,390 yuan/mt, then fluctuated considerably before finally closing at 77,170 yuan/mt, a gain of 0.68%. Open interest stood at 2,974 lots, down 252 lots from the previous trading day, while trading volume reached 3,478 lots. On the macro front, several US Fed officials released dovish signals, expressing support for further interest rate cuts. Market expectations for a US Fed rate cut in December rose to 80%, supporting copper prices. Meanwhile, the market is closely watching the US September PPI data scheduled for release tonight. On the fundamentals side, supply side, supply shows structural divergence, with high-quality copper and SX-EW copper supplies remaining tight, while standard-quality copper supply is relatively ample. Demand side, as copper prices rebounded, market procurement sentiment weakened somewhat.

The SHFE copper 2512 contract closed at 86,540 yuan/mt. Based on the BC copper 2512 contract price of 77,170 yuan/mt and its post-tax price of 87,202 yuan/mt, the price spread between the SHFE copper 2512 contract and BC copper was -662. The spread remained inverted and widened compared to the previous day.