The Most-Traded BC Copper Futures Contract Closed Down 3.75%, Downstream Stockpiling Cooled and Consumption Weakened [SMM BC Copper Review]

Today, the most-traded BC copper 2603 contract opened at 92,010 yuan/mt, fluctuated upward initially to a high of 92,870 yuan/mt, then fluctuated downward throughout the session. After the daytime session opened, it fluctuated downward again to a low of 89,210 yuan/mt, then fluctuated considerably before finally closing at 89,560 yuan/mt, down 3.75%. Open interest reached 5,803 lots, an increase of 179 lots from the previous trading day, while trading volume reached 8,929 lots, indicating an increase in bearish positions. From a macro perspective, on the macro front, US January ADP employment figures fell short of expectations, the labour market slowdown continued, and the US dollar index strengthened, putting downward pressure on copper prices. Meanwhile, LME copper inventories climbed to their highest level since March, and continued inventory accumulation further pressured copper prices. On the supply side, domestic copper supply arrivals increased, leading to relatively loose overall market supply. Demand side, affected by the approaching holiday, stockpiling sentiment among downstream enterprises gradually cooled, and end-use consumption remained weak.

The SHFE copper 2603 contract closed at 100,980 yuan/mt. Based on the BC copper 2603 contract price of 89,560 yuan/mt, its post-tax price is 101,202 yuan/mt, resulting in a price spread of -156 between the SHFE copper 2603 contract and BC copper. The spread remained inverted and continued to widen.