The most-traded BC copper contract fluctuated and closed higher, with macro risk aversion and supply concerns providing support [SMM BC Copper Review]

Today, the most-traded BC copper 2602 contract opened at 89,760 yuan/mt, fluctuated upward at the start of the session and climbed to 90,860 yuan/mt. After the daytime session opened, copper prices gradually moved lower, touching a low of 89,560 yuan/mt, then fluctuated considerably before finally closing at 90,040 yuan/mt, up 0.39%. Open interest fell to 6,747 lots, down 70 lots from the previous trading day, while trading volume reached 6,747 lots, indicating a reduction in bearish positions. On the macro front, from a macro perspective, Trump’s threat of tariff hikes against Europe over Greenland sparked market risk aversion, prompting investors to shift to safe-haven currencies and weakening the US dollar index, which lent support to copper prices. Meanwhile, Chile lowered its short-term copper production forecast, fueling market concerns over supply and further boosting copper prices. On the fundamentals, spot supply of copper cathode was generally sufficient, with regular brands continuously flowing into the market, though some high-grade copper experienced brief tightness in the morning. Demand side, as copper prices stabilized, downstream buyers generally maintained a wait-and-see stance, making only just-in-time procurement.

SHFE copper 2602 contract closed at 100,940 yuan/mt. Based on the BC copper 2602 contract price of 90,040 yuan/mt, its after-tax price is 101,745 yuan/mt, resulting in a price spread of -805 between SHFE copper 2602 and BC copper. The spread remained inverted and narrowed from the previous day.