The SHFE/LME price ratio remains unfavorable, domestic trade is sluggish, and warehouse warrant prices are under pressure [SMM Yangshan Spot Copper].

January 21, 2025: Today, warehouse warrant prices ranged from $66 to $80/mt, QP February, with an average price down by $3/mt compared to the previous trading day; B/L prices ranged from $56 to $70/mt, QP February, with the average price unchanged from the previous trading day; EQ copper (CIF B/L) ranged from $6/mt to $20/mt, QP February, with the average price unchanged from the previous trading day. The quotations referenced cargo arrivals in late January and early February.

During the day, the SHFE/LME price ratio for the SHFE copper 2502 contract was around -580 yuan/mt, LME copper 3M-Feb was at C$68.67/mt, and the spread between February and March contracts was around C$35/mt. The import window remained firmly closed during the day. Pre-holiday downstream demand gradually weakened, with scattered offers for March QP cargoes in the market, but overall transactions were poor.

Currently, the actual transaction price for pyro high-quality copper warehouse warrants is $80/mt, mainstream pyro copper is $73/mt, and wet-process copper is $66/mt; high-quality copper B/L is $70/mt, mainstream pyro copper is around $63/mt, and wet-process copper is $56/mt; CIF B/L EQ copper ranges from $6/mt to $20/mt, with an average price of $13/mt.