Today, the most-traded BC copper contract 2602 opened at 91,770 yuan/mt, with copper prices holding up well early in the session. After touching a high of 92,180 yuan/mt at the day's open, prices fluctuated downward, nearing a low of 90,010 yuan/mt toward the close, and finally settled at 90,340 yuan/mt, up 1.15%. Open interest fell to 2,961 lots, down 2,503 lots from the previous trading day, while trading volume reached 96.3 million lots, up 2,185 lots. On the macro front, escalating tensions between the US and Iran, Greenland's sovereignty claims, and pressure campaigns in multiple Latin American countries heightened geopolitical risks, weighing on the US dollar. Combined with stronger precious metals and expectations of domestic policy easing, these factors supported copper prices. On the supply side, arrivals of both imported and domestic copper improved marginally. Demand side, the pullback in copper prices dampened downstream purchase willingness. Inventory side, as of Monday, January 26, SMM nationwide copper inventories fell 1.49% WoW.
The most-traded SHFE copper contract 2602 settled at 101,510 yuan/mt. Calculated based on the BC copper contract 2602 price of 90,340 yuan/mt, the after-tax price would be 102,084 yuan/mt, resulting in a price spread of -574 between the SHFE copper 2602 and BC copper contracts, which remained inverted and narrowed from the previous day.
