Today, the most-traded BC copper 2604 contract opened at 89,110 yuan/mt. It fluctuated rangebound early in the session and touched a high of 89,300 yuan/mt. After the daytime open, it opened lower with a gap and dipped to 86,710 yuan/mt, then fluctuated upward, finally closing at 88,750 yuan/mt, down 0.66%. Open interest fell to 6,001 lots, down 38 lots from the previous trading day, and trading volume rose to 9,076 lots, indicating bulls reduced positions. On the macro front, US nonfarm payrolls in February unexpectedly fell by 92,000, but persistent tensions in the Middle East pushed up oil prices. Market concerns over inflation and economic weakening intensified, the US dollar index stayed firm, and this weighed on copper prices. Fundamentals, supply side, continued to ramp up, with ample replenishment from domestic and imported sources; demand side, the pullback in copper prices effectively stimulated downstream consumption, with rigid demand gradually being released. Inventory side, as of March 9, SMM copper inventories in major regions nationwide increased 3.37% WoW from last Monday.
The SHFE copper 2604 contract closed at 100,190 yuan/mt. Based on the BC copper 2604 contract at 88,750 yuan/mt, its after-tax price was 100,287 yuan/mt. The price spread between the SHFE copper 2604 contract and BC copper was -97, and the backwardation narrowed from the previous day.
