BC Copper Fluctuated Downward to Close Lower, Precious Metals Cooling Weighed on Copper Prices [SMM BC Copper Review]

Today, the most-traded BC copper contract 2602 opened at 90,200 yuan/mt. It initially fluctuated downward, touching a low of 87,770 yuan/mt, then fluctuated upward. After the daytime session opened, copper prices pulled back again, after which the price center continued to rise, approaching the close and testing 90,510 yuan/mt, finally settling at 90,150 yuan/mt, down 0.31%. Open interest reached 7,403 lots, decreasing by 458 lots compared with the previous trading day, while trading volume reached 15,200 lots, showing a reduction in long positions. On the macro front, the precious metals market cooled overall as bulls took profits and exited, dragging copper prices down in sync. Several US Fed officials released optimistic signals regarding further interest rate cuts ahead, prompting market participants to adopt a wait-and-see stance, awaiting more key data to support interest rate decisions. On the fundamentals side, supply in the spot copper cathode market showed significant structural divergence, with relatively tight availability of certain brands. Meanwhile, suppliers generally converted spot resources into delivery warrants, further tightening circulating supply in the spot market. Demand side, market purchasing sentiment recovered slightly after copper prices pulled back, but the overall improvement was relatively limited.

The most-traded SHFE copper contract 2602 settled at 101,410 yuan/mt. Based on the BC copper contract 2602 settlement price of 90,150 yuan/mt, its post-tax price is 101,869 yuan/mt. The price spread between the SHFE copper 2602 contract and the BC copper contract is -459, maintaining an inverted spread which further narrowed compared with the previous day.