Intraday warrant demand was high, with inter-month arbitrage becoming the dominant logic [SMM Yangshan Copper Spot]

Published: Feb 26, 2026 12:33

Save

News on February 25, 2026: Today, warrant prices were $45-57/mt, QP March, with the average price down $2/mt from the previous trading day; B/L prices were $42-54/mt, QP March, with the average price down $1/mt from the previous trading day; ER copper (CIF B/L) was $15-23/mt, QP March, with the average price down $1/mt from the previous trading day. Quotations referred to cargoes arriving in late February and early March.

Due to some traders having short demand for long-term contracts, QP March warrant transactions were active. As the LME contango structure remained steep, there were some arbitrage-driven trades. It was heard that a small amount of pyrometallurgy B/L for late February arrival closed at $55-60/mt, QP March; ER B/L offers for late February and early March closed at $25-30/mt, while ER B/L for mid-to-late March arrival was offered at $30/mt, QP April. Warrant prices rose sharply, with pyrometallurgy and two-brand B/L offered at $60-65/mt, QP March-April.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

9 hours ago

Copper Scrap Payability Coefficients Hold Exceptionally Firm as Supply-Demand Mismatch Defies Traditional Market Logic

In May, copper prices surged before retracing, yet copper scrap payability coefficients remained exceptionally firm. Transactions for Millberry stabilized at a high level of 98.5%, while No. 2 copper became the market highlight, with its coefficient climbing from around 95% to 96%–97% due to the premium upside of its gold and silver by-products. Driven by stricter domestic policies and tax compliance, China demand remained robust. Conversely, tight overseas scrap supply persisted, and this structural mismatch kept import payability coefficients elevated and sticky for the short term. Under the current landscape of tight global supply and resilient demand, the traditional market logic of "surging copper prices driving down payability coefficients" has effectively become obsolete.

9 hours ago

Copper Cathode Output Down 0.81% MoM in May, Up 2.73% YoY

[SMM Copper Cathode Production] Copper cathode production in May came in at 1.1694 million mt, down 0.81% MoM and up 2.73% YoY. Cumulative production from January to May was 5.8761 million mt, up 7.66% YoY cumulatively.

9 hours ago

Copper Cathode Output Dips in May, June Forecast Slightly Lower Amid Ongoing Smelter Maintenance

9 hours ago