BC Copper 2601 contract edged up 0.15%, U.S. data fell short of expectations, supporting copper prices [SMM BC Copper Review]

Today, the most-traded BC copper 2601 contract opened at 80,070 yuan/mt and closed higher. During the night session, BC copper opened and touched a high of 80,520 yuan/mt, then fluctuated downward throughout. In the morning trading session, it touched a low of 79,110 yuan/mt before fluctuating rangebound, eventually closing at 79,620 yuan/mt, up 120 yuan/mt, a gain of 0.15%. Open interest decreased to 4,542 lots, down 75 lots from the previous trading day, while trading volume decreased to 7,607 lots, down 4,348 lots from the previous trading day. On the macro front, the US November ISM Manufacturing PMI came in at 48.2, below market expectations, indicating contraction in the manufacturing sector. The US dollar index declined, supporting copper prices. On the fundamentals side, supply of high-quality copper is scarce, and market supply is tight. Demand side, due to rising copper prices, purchasing sentiment remained sluggish.

SHFE copper contract 2601 closed at 88,920 yuan/mt. Based on the BC copper 2601 contract price of 79,620 yuan/mt, its post-tax price is 89,971 yuan/mt. The price spread between SHFE copper 2601 and the BC copper contract was -1,051 yuan/mt; the spread remained inverted and narrowed compared to the previous day.