BC Copper 2601 contract narrowed by 2.05%. Macro tailwinds exhausted, copper prices under pressure [SMM BC Copper Review]

Today, the most-traded BC copper 2601 contract opened at 83,960 yuan/mt. During the night session, it initially touched a high of 84,720 yuan/mt, but then, as bulls reduced their positions, the center of copper prices fell sharply, bottoming out at 81,300 yuan/mt, before finally consolidating sideways to close at 82,760 yuan/mt, down 1,730 yuan/mt, a drop of 2.05%. Open interest fell to 3,819 lots, a decrease of 765 lots from the previous trading day, while trading volume rose to 14,214 lots, an increase of 4,435 lots from the previous trading day. On the macro front, there are hawk-dove divisions within the US Fed, and with the interest rate cut implemented, macro tailwinds have been exhausted. Simultaneously, Trump's stance towards the future chairman has introduced policy uncertainty, collectively putting pressure on copper prices and leading to a lower close. On the fundamental side, supply side, arrivals of imported copper are low, and after deliveries, arrivals of domestic supplies have decreased, resulting in a generally tight supply landscape. Demand side, after the copper price correction, some downstream enterprises' willingness to restock at lower prices has improved somewhat. As of December 15, SMM mainstream region copper cathode inventories saw a slight inventory buildup WoW.

The SHFE copper 2601 contract closed at 92,400 yuan/mt. Based on the BC copper 2601 contract price of 82,760 yuan/mt, its post-tax price is 93,519 yuan/mt. The price spread between the SHFE copper 2601 contract and the BC copper contract is -1,119 yuan/mt; the spread remains inverted and narrowed compared to the previous day.