BC Copper 2601 Fluctuated and Closed Higher, US Dollar Decline Releases Positive Support [SMM BC Copper Review]

Today, the most-traded BC copper 2601 contract opened at 85,970 yuan/mt, fluctuated downward initially to a low of 84,280 yuan/mt, then fluctuated upward. After the daytime session opened, copper prices gradually rose, reaching a high of 87,380 yuan/mt, and finally settled at 87,310 yuan/mt, up 2.22%. Open interest stood at 3,083 lots, down 194 lots from the previous trading day, while trading volume reached 8,489 lots. Macro perspective, the approaching Christmas holiday led to a mediocre market trading atmosphere. Strengthened economic data and weak employment data pushed the US dollar index to fluctuate downward, supporting copper prices. On the supply side, spot supply of copper cathode was generally sufficient, with a mediocre market trading atmosphere. Demand side performed weakly; after copper prices broke through high levels, downstream purchasing sentiment turned cautious.

The most-traded SHFE copper 2601 contract settled at 95,990 yuan/mt. Based on the BC copper 2601 contract price of 87,310 yuan/mt, its after-tax price is 98,660 yuan/mt, resulting in a price spread of -2,670 yuan between the SHFE copper 2601 contract and BC copper. The spread remained inverted and widened compared to the previous day.