BC Copper 2601 contract edged up 0.34%, supply tightens supporting copper prices [SMM BC Copper Review]

Today, the most-traded BC copper 2601 contract opened at 79,820 yuan/mt and closed lower. During the night session, BC copper initially touched a high of 80,120 yuan/mt, then fluctuated downward to a low of 79,300 yuan/mt. After the day session opened, copper prices fluctuated upward and finally settled at 80,040 yuan/mt, up 270 yuan/mt, an increase of 0.34%. Open interest reached 4,798 lots, an increase of 256 lots from the previous trading day, while trading volume reached 4,874 lots, a decrease of 2,733 lots from the previous trading day. On the macro front, Trump actively hinted at Hassett as the next Fed Chairman, putting the US dollar index under pressure and supporting copper prices. In addition, Putin threatened to cut off Ukraine's maritime routes and intensified attacks, while holding lengthy talks with a US envoy. On the fundamentals side, supply of high-quality copper remained tight, with market supply continuing to be constrained. Demand side, due to higher copper prices, procurement sentiment remained sluggish.

The most-traded SHFE copper 2601 contract settled at 89,210 yuan/mt. Based on the BC copper 2601 contract price of 80,040 yuan/mt, its after-tax price is 90,445 yuan/mt. The price spread between the SHFE copper 2601 contract and the BC copper contract was -1,235 yuan/mt, maintaining an inverted spread that widened from the previous day.