The most-traded BC copper contract closed down 2.26%, with multiple macro factors weighing on copper prices [SMM BC Copper Review]

Today, the most-traded BC copper 2602 contract opened at 91,640 yuan/mt. After a slight decline in the center at the beginning of the session, it fluctuated higher. During the day, it touched a high of 92,170 yuan/mt after opening, then the center fell straight down, approaching a low of 89,180 yuan/mt near the end of the session, and finally closed at 89,650 yuan/mt, down 2.26%. Open interest fell to 6,867 lots, down 269 lots from the previous trading day, and trading volume reached 12,000 lots, up 23 lots from the previous trading day. On the macro front, concerns over US tariffs continued to have a bearish impact on copper prices. At the same time, strong initial jobless claims data, coupled with intensive statements from multiple US Fed officials prioritizing inflation control and low probability of near-term interest rate cuts, supported the US dollar index, weighing on copper prices. On the fundamentals side, arrivals of imported copper remained low, while domestic supply arrivals decreased after the delivery cycle ended, narrowing market supply. On the demand side, downstream users replenished stocks at lows, but still mainly maintained just-in-time procurement. In terms of inventory, as of Thursday, January 15, SMM copper inventories in mainstream regions across China increased 17.2% WoW.

The most-traded SHFE copper 2602 contract closed at 100,590 yuan/mt. Calculated based on the BC copper 2602 contract price of 89,650 yuan/mt, its after-tax price is 101,305 yuan/mt. The price spread between the SHFE copper 2602 contract and BC copper was -715, maintaining an inverted spread which narrowed compared to the previous day.