Yangshan Copper Premiums were Stable with some Downward Potential due to the Import Losses

SHANGHAI, May 23 (SMM) - Yangshan copper premiums stood at $70-83/mt under warrants today. The average price was $77/mt, $0.5/mt lower than the previous trading day. Quotes under B/L stood at $60-80/mt. The average price was $70/mt, flat from the previous trading day, with the quotation period of June. The quotation refers to the prices of goods arriving at ports in late May and in the first half of June. The premiums of LME 0-3 were $29/mt. The import losses were around 550 yuan/mt over the 2206 copper contract as of 10 a. m. today.

Sellers held firm to the prices due to the high spot premiums in China. However, the import losses suppressed the buying interest, hence the Yangshan premiums stayed stable with some downward potential. According to the survey today, LME copper was still in the backwardation structure. Warrant traders had a strong willingness to ship goods under the pressure of capital. Some brands were quoted at over $80/mt. The mainstream pyro-copper was quoted at $80/mt, and hydro-copper was quoted at over $75/mt. There was no transaction in the market yet. On the bill of lading front, with the improvement of logistics in Shanghai, the efficiency of switching bills rose, attracting inquiries. However, the market was still sluggish because of the import losses. In the early trading, the prices of high-quality copper were over $80/mt, and pyro-copper was quoted at $75/mt. There was no transaction in the market yet.

The high-quality pyro-copper premiums were around $83/mt under warrants, and mainstream pyro-copper and hydro-copper were quoted at $78/mt and $70/mt respectively. The high-quality copper under the bill of lading was quoted at $80/mt, and that of mainstream pyro-copper and hydro-copper were $75/mt and $60/mt respectively.
 

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The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.