Today, the most-traded BC copper 2602 contract opened at 89,860 yuan/mt. It fluctuated considerably at the start of the session, touching a low of 88,680 yuan/mt, then fluctuated upward. During the day session, it opened higher with a gap, testing a high of 90,610 yuan/mt, before fluctuating considerably again, and finally closed at 90,120 yuan/mt, down 0.69%. Open interest fell to 7,650 lots, decreasing by 311 lots from the previous trading day, while trading volume reached 6,556 lots, indicating long position liquidation. On the macro front, Trump indicated he intends to retain Hassett in his position, significantly cooling market expectations for loose monetary policy. The US dollar index strengthened, weighing on copper prices. At the same time, longs took profits, and coupled with increased market concerns about demand prospects against the backdrop of high copper prices, further dragged copper prices lower. On the fundamentals side, domestic supplies arrived gradually, and overall market supply became ample, with only select high-quality brands remaining relatively tight. Demand side, supported by the pullback in copper prices, downstream purchasing sentiment marginally recovered, but the improvement was limited.
The SHFE copper 2602 contract closed at 100,990 yuan/mt. Based on the BC copper 2602 contract price of 90,120 yuan/mt, its post-tax price is 101,835 yuan/mt. The price spread between the SHFE copper 2602 contract and BC copper was -845, remaining inverted and widening from the previous day.
