BC Copper 2601 contract closed down 0.79%. Policy divergence in the US puts copper prices under pressure [SMM BC Copper Review]

Today, the most-traded BC copper 2601 contract opened at 83,780 yuan/mt. In the night session, it touched a high of 83,980 yuan/mt at opening, then, as bulls reduced positions, the center of copper prices fell straight to a low of 81,620 yuan/mt, finally closing at 82,150 yuan/mt, down 650 yuan/mt, a drop of 0.79%. Open interest reached 3,356 lots, decreasing by 463 lots from the previous trading day, while trading volume reached 7,651 lots, down 6,563 lots. On the macro front, market focus shifted from the interest rate cut itself to the uncertainty of its subsequent path, with significant divergence within the US Fed over future policy steps and a clear statement that decisions will strictly depend on economic data. Additionally, renewed concerns about an AI bubble collectively put copper prices under pressure. On the fundamentals side, supply arrivals were limited, but suppliers showed high willingness to sell, leading to a looser spot market supply. Demand side, despite the price pullback, market purchasing sentiment remained mediocre.

SHFE copper contract 2601 closed at 91,840 yuan/mt. Based on the BC copper 2601 contract price of 82,150 yuan/mt, its post-tax price is 92,830 yuan/mt, resulting in a price spread of -990 yuan/mt between SHFE copper 2601 and the BC copper contract. The spread remained inverted and narrowed compared to the previous day.