BC Copper 2601 Contract Closed Up 0.88%, Japanese Interest Rate Hike Implemented as Expected Supporting Copper Prices [SMM BC Copper Review]

Today, the most-traded BC copper 2601 contract opened at 83,050 yuan/mt. In the night session, after opening, it initially touched a low of 82,600 yuan/mt, then the price center fluctuated upward. During the day session, after maintaining a "W" pattern early in the session, it rose as bulls increased their positions, approaching a high of 84,010 yuan/mt near the close, and finally settled at 83,840 yuan/mt, up 730 yuan/mt, a gain of 0.88%. Open interest reached 3,975 lots, an increase of 391 lots from the previous trading day, while trading volume reached 7,038 lots, an increase of 1,203 lots from the previous trading day. On the macro front, US November CPI data came in below expectations, leading to a slight increase in market expectations for a US Fed interest rate cut early next year. Additionally, Japan's rate hike proceeded as scheduled, jointly providing favorable support for copper prices. On the fundamentals side, suppliers showed an active willingness to sell on the supply side, with relatively ample market supply; meanwhile, demand-side performance remained weak.

The most-traded SHFE copper 2601 contract settled at 93,000 yuan/mt. Based on the BC copper 2601 contract price of 83,840 yuan/mt, its post-tax price is 94,739 yuan/mt, resulting in a price spread of -1,739 yuan/mt between the SHFE copper 2601 contract and the BC copper contract. The spread remained inverted and widened compared to the previous day.