BC Copper 2601 Contract Closed Up 1.6%, Expectations for US Fed Interest Rate Cut Support Copper Prices [SMM BC Copper Review]

Today, the most-traded BC copper 2601 contract opened at 81,710 yuan/mt and closed lower intraday. During the night session, BC copper initially touched a low of 81,520 yuan/mt after opening. After the daytime session began, copper prices rose steadily as bulls increased their positions, reaching a high of 83,560 yuan/mt near the close, and finally settled at 83,390 yuan/mt, up 1,310 yuan/mt, a gain of 1.6%. Open interest reached 5,499 lots, an increase of 386 lots from the previous trading day, while trading volume stood at 11,403 lots, down 1,352 lots from the previous session. On the macro front, White House official Hassett signaled that the US Fed may cut interest rates by 25 basis points at its next meeting, reinforcing expectations for further rate cuts. Meanwhile, the latest data showed that US initial jobless claims for the previous week came in at 191,000, below market expectations of 220,000, and the US dollar index closed slightly higher. On the supply side, imported arrivals remained low, keeping supply tight, while demand side, procurement sentiment continued to be under pressure as copper prices rose.

SHFE copper contract 2601 settled at 92,780 yuan/mt. Based on the BC copper 2601 contract price of 83,390 yuan/mt, its after-tax price is 94,231 yuan/mt, resulting in a price spread of -1,451 yuan/mt between SHFE copper 2601 and the BC copper contract. The spread remained inverted and narrowed compared to the previous day.