SHFE/LME Price Ratio Continues to Improve, Market Supply Remains Scarce [SMM Yangshan Spot Copper]

December 24, 2024: Today, warehouse warrant prices were $64-78/mt, QP January, with an average price increase of $8/mt compared to the previous trading day; B/L prices were $60-74/mt, QP January, with an average price increase of $7/mt compared to the previous trading day; EQ copper (CIF B/L) was $14-28/mt, QP January, with an average price increase of $2/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 +214 yuan/mt, LME copper 3M-Jan was at C$76.61/mt, and the SHFE copper 2501-2502 spread was around C$43/mt. The SHFE/LME price ratio continued to improve during the day, but market liquidity was extremely limited, with only a few higher offers appearing. However, downstream inquiries were scarce, and market transactions were difficult to observe. Market activity was limited around Christmas, and market transactions are expected to show no growth.

Currently, pyro high-quality copper warehouse warrant prices are $78/mt, mainstream pyro $71/mt, and wet-process $64/mt; high-quality copper B/L prices are $74/mt, mainstream pyro around $67/mt, and wet-process $60/mt; CIF B/L EQ copper is $14-28/mt, with an average price of $21/mt.