Macro Support Boosts Copper Prices, BC Copper 2601 Contract Fluctuates and Closes Higher [SMM BC Copper Review]

Today, the most-traded BC copper 2601 contract opened at 77,490 yuan/mt, touched a low of 77,300 yuan/mt early in the session, then the center of copper prices gradually shifted upward. After the daytime session opened, prices continued to fluctuate upward, approaching a high of 78,130 yuan/mt near the close, and finally settled at 78,060 yuan/mt, up 0.55%. Open interest reached 3,766 lots, an increase of 1,000 lots from the previous trading day, while trading volume reached 5,196 lots. On the macro front, Putin's statement that the final version of the peace agreement has not been determined boosted market risk-off sentiment, coupled with strong expectations for a US Fed interest rate cut, both supporting copper prices. On the fundamentals side, supply side, spot copper cathode market supply remained generally tight, especially for high-quality copper. Demand side, downstream purchasing sentiment declined on the last trading day of the month.

The most-traded SHFE copper 2512 contract settled at 87,470 yuan/mt. Based on the BC copper 2512 contract price of 78,060 yuan/mt, its after-tax price is 88,207 yuan/mt, resulting in a price spread of -737 between the SHFE copper 2512 contract and BC copper. The spread remained inverted and narrowed compared to the previous day.