The Most-Traded BC Copper Contract Fluctuated and Closed Higher, Domestic Arrivals Concentrated and Demand Weak [SMM BC Copper Review]

Today, the most-traded BC copper contract 2602 opened at 87,920 yuan/mt. It fluctuated upward at the start of the session, and after the daytime opening, the center of copper prices gradually moved higher, touching a high of 89,220 yuan/mt. Subsequently, the center of copper prices fluctuated downward, approaching the end of the session and falling to a low of 87,300 yuan/mt, finally closing at 87,870 yuan/mt, up 0.92%. Open interest reached 7,214 lots, an increase of 501 lots from the previous trading day, while trading volume reached 15,100 lots. On the macro front, although the US Fed maintains an open stance toward interest rate cuts, internal disagreements are prominent, making it difficult to provide clear guidance to the market. Additionally, geopolitical risks in Yemen have escalated abruptly due to the fragmentation of the anti-Houthi coalition, increasing volatility in the precious metals market and causing fluctuating market sentiment. On the fundamentals side, supply side, domestic supplies saw concentrated arrivals, while imported supplies arrived in limited quantities. Demand side, as the holiday approaches, downstream purchasing sentiment was noticeably weak. Inventory side, as of Wednesday, December 31, SMM nationwide copper inventories in mainstream regions increased 11.22% WoW.

SHFE's most-traded copper contract 2602 closed at 98,240 yuan/mt. Based on the BC copper contract 2602 closing price of 87,870 yuan/mt, its post-tax price is 99,293 yuan/mt. The price spread between SHFE copper 2602 and BC copper is -1,053, maintaining an inverted spread and narrowing from the previous day.