BC Copper 2601 Fluctuates Considerably with a Slight Decline, Interest Rate Cut Expectations Dominate Market Sentiment [SMM BC Copper Review]

Today, the most-traded BC copper 2601 contract opened at 81,900 yuan/mt, fluctuated downward initially and touched a low of 81,200 yuan/mt, then fluctuated upward. After the daytime session opened, the center of copper prices gradually moved higher, touching a high of 82,740 yuan/mt, then fluctuated considerably and finally closed at 82,270 yuan/mt, down 0.17%. Open interest reached 4,467 lots, a decrease of 135 lots compared with the previous trading day, and trading volume reached 6,849 lots. Expectations for US Fed interest rate cuts diverged; the next chair candidate signaled ample room for interest rate cuts, and the market focused on the evening interest rate decision. On the fundamentals, supply side, willingness to sell was strong, and spot cargo was ample in the market. Demand side, after copper prices pulled back, downstream purchasing sentiment was relatively cautious.

SHFE copper 2601 contract closed at 91,850 yuan/mt. Based on the BC copper 2601 contract price of 82,270 yuan/mt, its after-tax price is 92,965 yuan/mt. The price spread between SHFE copper 2601 contract and BC copper was -1,115; the spread remained inverted and narrowed further compared with the previous day.