BC Copper 2601 fluctuated considerably and closed higher, US Fed interest rate cut boosted copper prices to hit highs [SMM BC Copper Review]

Today, the most-traded BC copper 2601 contract opened at 82,610 yuan/mt. At the beginning of the session, the center of copper prices gradually moved downward, touching a low of 81,940 yuan/mt, then moved sideways. After the daytime session opened, copper prices rose, touching a high of 83,360 yuan/mt, then fluctuated downward and finally closed at 82,650 yuan/mt, up 0.88%. Open interest fell to 4,366 lots, down 101 lots from the previous trading day, while trading volume reached 6,694 lots. On the macro front, the US Fed cut interest rates by 25 basis points as expected, but after the rate cut, Trump said the cut was too small; the US dollar index closed lower, which is positive for copper prices. On the fundamentals side, supply-side imports plus domestic arrivals decreased. On the demand side, after copper prices stabilized, demand showed marginal improvement.

SHFE copper 2601 contract closed at 92,210 yuan/mt. Based on the BC copper 2601 contract price of 82,650 yuan/mt, its after-tax price is 93,394 yuan/mt. The price spread between SHFE copper 2601 and BC copper is -1,184; the spread remained inverted and widened compared with the previous day.