Today, the most-traded BC copper 2604 contract opened at the intraday high of 83,810 yuan/mt, then fluctuated downward. After opening lower with a gap in the daytime session, it dipped to 80,880 yuan/mt, then moved higher in choppy trading before its statistical center pulled back, finally closing at 81,380 yuan/mt, down 2.35%. Open interest reached 5,529 lots, up 237 lots from the previous trading day, while trading volume reached 6,767 lots, indicating increased short positions by bears. From a macro perspective, geopolitical risks in the Middle East continued to escalate, and news of additional US troop deployments intensified concerns over a worsening situation, driving the US dollar stronger; meanwhile, renewed expectations for US Fed interest rate hikes jointly weighed on copper prices. Fundamentally, on the supply side, arrivals of both domestic and imported cargo were stable, with ample supply; on the demand side, downstream consumption continued to recover as copper prices kept pulling back.
The SHFE copper 2604 contract closed at 92,129 yuan/mt. Based on the BC copper 2604 contract at 81,380 yuan/mt, its after-tax price was 91,959 yuan/mt. The price spread between the SHFE copper 2604 contract and BC copper was 170, and the spread maintained a contango structure, widening somewhat from the previous day.
