Yangshan Copper Premiums Climbed Further amid Narrower Import Losses

SHANGHAI, Mar 14 - Yangshan copper premiums with a quotation period in March stood at $10-30/mt under warrants during March 6-10, and between $22-38/mt under bill of lading (B/L) with a quotation period in April. As of March 10, the SHFE/LME copper price ratio stood at 7.85.

Last week, the loss of imports improved, and the enthusiasm for trading strengthened. Meanwhile, sellers raised prices in anticipation of tight shipments arrivals in April. Some traders held onto their cargoes, inflating prices. As the spread between acceptable prices by sellers and buyers expanded, trading weakened at the end of the week. Traded import premiums for high-quality pyro-copper currently stand at around $30/mt under warrants, and $20/mt for mainstream pyro-copper. Those for hydro-copper stand at $10/mt.

On the B/L front, premiums stand at $35/mt for high-quality copper, $28-30/mt for mainstream pyro-copper, and $20/mt for hydro-copper. LME copper prices are currently weak, and LME copper inventories look set to grow. Domestic inventories, on the other hand, have seen an inflection point.

Copper in the domestic spot market traded with premiums. Import window is expected to open occasionally. Sellers would raise their quotes further. As such, Yangshan copper premiums will continue to rise.