Today, the most-traded BC copper contract 2605 opened at 89,730 yuan/mt, touching a low of 88,820 yuan/mt at the beginning of the session before the center fluctuated upward, reaching a high of 90,060 yuan/mt near the close, and finally settled at 89,910 yuan/mt, down 0.56%. Open interest stood at 1,356 lots, down 313 lots from the previous trading day, and trading volume was 1,662 lots, down 2,632 lots from the previous trading day. On the macro front, the US prohibited domestic and foreign entities from paying Strait of Hormuz transit fees to Iran, or face significant sanctions risks. Iran's military stated the war was not over and had upgraded its equipment; the Revolutionary Guards claimed absolute control over the strait and demanded transit fees from passing vessels. Uncertainty over Middle East conflicts fueled inflation concerns, driving the US dollar index higher and weighing on copper prices. Fundamentals side, affected by month-end settlement, suppliers had weak willingness to sell, and available low-priced supplies were tight; demand side, downstream enterprises had largely completed stockpiling needs, and market trading was mediocre.
SHFE copper 2605 contract closed at 101,620 yuan/mt. Based on the BC copper 2605 contract price of 89,910 yuan/mt, its after-tax price was 101,598 yuan/mt, and the price spread between SHFE copper 2605 and BC copper was 22 yuan/mt, showing a contango structure.
