BC Copper Fluctuated Upward to Close Higher, Macro Pressure and Supply Disruptions in a Tug of War [SMM BC Copper Review]

Today, the most-traded BC copper 2602 contract opened and touched a low of 87,760 yuan/mt. At the start of the session, copper prices fluctuated upward, opened higher with a gap, and fluctuated considerably. Approaching the close, it climbed to a high of 90,350 yuan/mt, eventually settling at 90,070 yuan/mt, an increase of 0.64%. Open interest fell to 5,464 lots, down 495 lots from the previous trading day, while trading volume reached 7,445 lots, indicating a reduction in bear positions. On the macro front, a mild rebound in US inflation data weakened expectations for US Fed interest rate cuts, limiting the upside for copper prices. Meanwhile, a sudden production disruption at a copper mine in Chile further tightened the global copper supply balance. On the fundamentals, supply side, spot copper cathode was generally sufficient, with increased availability of some mainstream domestic brands adding to market pressure, though specific categories such as registered SX-EW copper remained tight. Demand side, as copper prices stabilized, just-in-time procurement continued, with overall performance steady.

The most-traded SHFE copper 2602 contract settled at 101,050 yuan/mt. Based on the BC copper 2602 contract price of 90,070 yuan/mt, its after-tax price is 101,779 yuan/mt, resulting in a price spread of -729 between SHFE copper 2602 and BC copper. The spread remained inverted and widened from the previous day.