The most-traded BC copper contract closed lower as risk-off sentiment intensified [SMM BC Copper Review]

Today, the most-traded BC copper 2602 contract opened at 90,250 yuan/mt. At the beginning of the session, the center of copper prices gradually moved downward, testing a low of 88,200 yuan/mt. After the daytime session opened, prices fluctuated upward and approached 90,470 yuan/mt near the close, finally settling at 90,090 yuan/mt, down 0.02%. Open interest fell to 6,050 lots, a decrease of 436 lots from the previous trading day, while trading volume reached 8,798 lots, indicating that bulls reduced their positions. On the macro front, the White House issued threats to Europe regarding Greenland's future, and Trump threatened to impose additional tariffs on the EU, triggering global trade and geopolitical uncertainties and boosting market risk-off sentiment. On the fundamentals side, spot supply of copper cathode was generally sufficient that day, with high-quality brands and registered SX-EW copper sources being scarce, while supply of ordinary brands remained ample. Demand side, downstream purchase willingness strengthened after copper prices pulled back.

SHFE copper 2602 contract settled at 101,050 yuan/mt. Based on the BC copper 2602 contract price of 90,090 yuan/mt, its after-tax price is 101,801 yuan/mt, resulting in a price spread of -751 between SHFE copper 2602 and BC copper. The spread remained inverted and narrowed compared to the previous day.