Copper Market Update: Bill of Lading Offers Decline, Warehouse Receipt Demand Rises Amidst Low Delivery Willingness

Published: Sep 13, 2024 11:38

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This week, the number of bill of lading offers in the US dollar copper market is less than that of last week, and the price differentiation is relatively large. When the price ratio improved in the middle of the week, some high-priced transactions of bills of lading arrived at the port in mid-to-late September. However, it is difficult to see firm offers for bills of lading arriving at the port at the end of September, and they were eventually forced to trade at low prices, mainly due to the fact that downstream buyers are unwilling to bear the cost of funds before the National Day holiday, resulting in low willingness to take delivery. In terms of warehouse receipts, due to the continuous decline in bonded warehouse inventory and the higher cost performance of warehouse receipts compared to bills of lading at the end of September, the market's willingness to purchase has increased. However, due to the limited number of warehouse receipts and the profit margin in direct imports, the offer price of holding merchants is high, and the direct trading volume in the US dollar copper market is limited.

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