Today, the most-traded BC copper 2603 contract opened at 89,660 yuan/mt. At the beginning of the session, copper prices tested the lower end at 89,030 yuan/mt. After the daytime session opened, prices rose to test the higher end at 91,020 yuan/mt, then fluctuated rangebound, and finally closed at 90,500 yuan/mt, up 0.19%. Open interest stood at 5,260 lots, down 315 lots from the previous trading day, while trading volume was 6,126 lots, down 3,416 lots from the previous trading day. On the macro front, the US dollar index retreated from highs, while persistent geopolitical risks such as the US-Iran negotiation deadlock and escalating military standoff provided support for copper prices. On the fundamentals side, supply remained loose as imported material continued to arrive. Demand side, demand was weak due to holidays at some downstream enterprises. In terms of inventory, as of Monday, February 9, SMM copper inventories in mainstream regions across China increased 0.27% WoW.
SHFE copper 2603 contract closed at 101,840 yuan/mt. Based on the BC copper 2603 contract price of 90,500 yuan/mt, its after-tax price is 102,265 yuan/mt. The price spread between SHFE copper 2603 and BC copper was -425, remaining inverted and narrowing from the previous day.
