BC Copper fluctuated upward and closed higher, primarily driven by macro tailwinds and improved sentiment. [SMM BC Copper Review]

Today, the most-traded BC copper 2602 contract opened at 90,910 yuan/mt, dipped slightly to touch a low of 90,250 yuan/mt in early trading, then fluctuated upward. During the day session, it reached a high of 92,450 yuan/mt, after which copper prices maintained rangebound fluctuations around the center, finally closing at 92,330 yuan/mt, down 3.44%. Open interest reached 7,471 lots, an increase of 68 lots from the previous trading day, while trading volume reached 13,600 lots, a decrease of 154 lots. On the macro front, US December non-farm payrolls data fell short of expectations and prior data was revised downward, coupled with US Fed officials' statements further suppressing near-term interest rate cut expectations. The Trump administration initiated diplomatic contact with Venezuela, easing market risk-off sentiment. Meanwhile, markets bet that emerging sectors would boost future copper demand, with overall warm sentiment pushing copper prices higher. On the fundamentals side, imported arrivals remained tight, while domestic supply arrivals were normal. At the same time, suppliers generally converted spot resources into delivery warrants, further tightening circulating supply in the spot market. On the demand side, copper prices rose again, continuously suppressing demand.

SHFE copper 2602 contract closed at 103,800 yuan/mt. Based on the BC copper 2602 contract price of 92,330 yuan/mt, its post-tax price is 10,433 yuan/mt. The price spread between SHFE copper 2602 and BC copper is -533, maintaining an inverted spread which widened from the previous day.