BC Copper 2601 contract fluctuated downward, high copper prices suppressed demand showing fatigue [SMM BC Copper Review]

Today, the most-traded BC copper 2601 contract opened at 83,240 yuan/mt, fluctuated upward initially to touch a high of 83,340 yuan/mt, then fluctuated considerably. After the daytime session opened, the center of copper prices gradually moved downward, approaching the session end to test a low of 81,380 yuan/mt, and finally closed at 81,610 yuan/mt, down 1.58%. Open interest fell to 4,602 lots, a decrease of 328 lots from the previous trading day, while trading volume reached 7,986 lots. On the macro front, US Fed Chairman candidate Hassett emphasized that the path of interest rate cuts depends on economic data, and rising hawkish expectations in the market pushed the US dollar stronger, putting pressure on copper prices. On the fundamentals side, suppliers' willingness to sell generally increased, and the supply side of the spot market shifted from tight to relatively loose; demand side, due to high copper prices, only maintained just-in-time procurement.

SHFE's most-traded copper 2601 contract closed at 91,090 yuan/mt. Based on the BC copper 2601 contract price of 81,610 yuan/mt, its after-tax price is 92,219 yuan/mt, resulting in a price spread of -1,129 between the SHFE copper 2601 contract and BC copper. The spread remained inverted and narrowed compared to the previous day.