Import Profit Margins Narrow, Spot Transactions in the USD Copper Market Hard to Find at Week's End [SMM Yangshan Spot Copper]

December 27, 2024: Today, warehouse warrant prices were $63-77/mt, QP January, with an average price down by $1/mt compared to the previous trading day; B/L prices were $58-72/mt, QP January, with an average price down by $2/mt compared to the previous trading day; EQ copper (CIF B/L) was $13-27/mt, QP January, with an average price down by $1/mt compared to the previous trading day. The quotations referenced cargo arrivals in late December and early January.

During the day, the SHFE/LME price ratio for the SHFE copper 2501 contract was around +30 yuan/mt, while LME copper 3M-Jan was at C$75.68/mt, and the 2501-month date to 2502-month date was around C$43/mt. The SHFE/LME price ratio weakened compared to the previous trading day, and the import profit margin for the front-month contract had significantly narrowed. Due to limited market liquidity, sporadic and relatively high offers, combined with low market activity at the end of the week, transactions in the US dollar copper market were scarce.

Currently, pyro high-quality copper warehouse warrant prices were $77/mt, mainstream pyro $70/mt, and wet-process $63/mt; high-quality copper B/L prices were $72/mt, mainstream pyro around $65/mt, and wet-process $58/mt; CIF B/L EQ copper was $13-27/mt, with an average price of $20/mt.