Today, the most-traded BC copper 2511 contract opened at 77,000 yuan/mt and closed higher for the day. During the night session, the contract touched a low of 76,760 yuan/mt after opening, then copper prices rose and moved sideways. Approaching the end of the session, it hit a high of 78,310 yuan/mt, finally settling at 78,220 yuan/mt, up 2,070 yuan/mt, a gain of 2.72%. Open interest reached 4,814 lots, an increase of 273 lots from the previous trading day, while trading volume reached 11,470 lots, up 2,841 lots. On the macro front, easing US-China trade tensions and the passage of China's 15th Five-Year Plan boosted market confidence, supporting copper prices. Meanwhile, escalating Russia-Ukraine conflict and increased US pressure on Venezuela heightened geopolitical tensions, driving safe-haven sentiment and also benefiting copper prices. On the fundamentals side, supply of high-quality copper remained tight, with overall supply narrowing, while on the demand side, procurement sentiment continued to weaken as copper prices surged.
SHFE copper contract 2511 settled at 87,700 yuan/mt. Based on the BC copper 2511 contract price of 78,220 yuan/mt, its after-tax price is 88,389 yuan/mt, resulting in a price spread of -689 yuan/mt between SHFE copper 2511 and BC copper contracts. The spread remained inverted and widened compared to the previous day.
