BC Copper 2601 Contract Closed Up 2.55%, Supply Tightens Supporting Copper Prices [SMM BC Copper Review]

Today, the most-traded BC copper 2601 contract opened at 80,640 yuan/mt and closed lower intraday. During the night session, BC copper opened higher with a gap, starting at 80,640 yuan/mt, then fluctuated upward to a high of 82,430 yuan/mt, and finally settled at 82,080 yuan/mt, up 2,040 yuan/mt, a gain of 2.55%. Open interest reached 5,113 lots, an increase of 315 lots from the previous trading day, while trading volume reached 12,755 lots, up 7,881 lots. On the macro front, US ADP employment in November fell by 32,000, far below market expectations and the lowest since March 2023. Combined with Treasury Secretary Yellen's expectations for interest rate cuts, this put the US dollar under pressure, supporting copper prices. Additionally, Glencore's downward revision of its near-to-medium-term copper production expectations intensified market concerns over short-term supply tightness, further underpinning copper prices. On the fundamentals, supply of high-quality copper remained tight, while demand-side purchasing sentiment was subdued as copper prices hit new highs.

The most-traded SHFE copper 2601 contract settled at 90,980 yuan/mt. Based on the BC copper 2601 contract price of 82,080 yuan/mt and its post-tax price of 92,750 yuan/mt, the price spread between the SHFE copper 2601 contract and the BC copper contract was -1,770 yuan/mt, maintaining an inverted spread that widened from the previous day.