The commissioning of mines was delayed, coupled with strikes disturbing the market, and the most-traded BC copper contract surged by 4.4%. [SMM BC Copper Review]

Today, the most-traded BC copper 2602 contract opened at 90,380 yuan/mt, touched a low of 90,210 yuan/mt early in the session, then fluctuated upward. After the daytime session opened, the center of copper prices continued to shift upward, approaching the session's end and testing a high of 94,220 yuan/mt, finally closing at 93,970 yuan/mt, a gain of 4.40%. Open interest reached 7,958 lots, an increase of 66 lots from the previous trading day, while trading volume reached 15,900 lots, showing an increase in positions by bulls. On the macro front, delays in the commissioning of new mines, coupled with the breakdown of labor negotiations leading to a strike at the Mantoverde copper-gold mine in northern Chile, further intensified market concerns over a copper supply deficit, strongly supporting the rise in copper prices. On the fundamentals side, supply in the spot copper cathode market was generally ample, with both mainstream registered brands and non-registered brands having relatively abundant supply. Demand side, constrained by the continuous climb in copper prices, downstream consumption was weak, and the market exhibited an oversupply pattern.

The SHFE copper 2602 contract closed at 105,320 yuan/mt. Based on the BC copper 2602 contract price of 93,970 yuan/mt, its post-tax price is 106,186 yuan/mt, resulting in a price spread of -866 between the SHFE copper 2602 contract and BC copper. The spread remained inverted and narrowed compared to the previous day.