BC Copper Moved Sideways with a Slight Gain; Price Spread Between SHFE and LME Inverted Further [SMM BC Copper Commentary]

Today, the most-traded BC copper contract 2606 opened at 92,120 yuan/mt, fluctuated downward in early trading to touch a low of 91,770 yuan/mt, then the copper price center gradually shifted upward. After the daytime session opened, copper prices continued to fluctuate upward, probing up to 93,380 yuan/mt near the end of the session, before fluctuating downward to finally close at 93,030 yuan/mt, up 0.31%. Open interest stood at 8,025 lots, down 555 lots from the previous trading day, with trading volume at 6,757 lots, indicating bears reducing positions. Macro perspective, divergences in related negotiations eased somewhat, but the Strait of Hormuz fee issue remained contentious, hindering negotiation progress. Wait-and-see sentiment was strong in the market, and copper prices overall maintained a sideways trading pattern. Fundamentals side, spot copper cathode supply was ample, with imported copper continuing to arrive at ports and enter warehouses. However, elevated copper prices suppressed downstream purchase willingness, with enterprises mostly restocking on an as-needed basis. Market trading was sluggish, and demand-side recovery remained weak.

SHFE copper 2607 contract closed at 104,870 yuan/mt. Based on the BC copper 2606 contract at 93,030 yuan/mt, its after-tax price was 105,123 yuan/mt. The price spread between SHFE copper 2607 contract and BC copper was -253, with the inversion maintained and continuing to widen compared to the previous day.