LME copper backwardation structure widens as holding costs rise, leading to the sell-off of near-month cargoes [SMM Yangshan spot copper].

        February 25, 2025: Today's warehouse warrant prices were $34-46/mt, QP March, with the average price unchanged from the previous trading day; B/L prices were $48-60/mt, QP March, with the average price unchanged from the previous trading day; EQ copper (CIF B/L) was $0-8/mt, QP March, with the average price unchanged from the previous trading day. The quotations referred to cargoes arriving in mid-to-early March.

        During the day, the SHFE/LME price ratio for the SHFE copper 2503 contract was around -1,250 yuan/mt. LME copper 3M-Mar was at Back $21.99/mt, and March date to April date was around Back $11.18/mt. Due to the further widening of the Backwardation structure between March date and April date, some suppliers actively sold near-month B/Ls and warehouse warrants, but buyers showed weak purchase willingness, making it difficult to find transactions in the market.

        Currently, the spot price for pyro high-quality copper warehouse warrants is $46/mt, mainstream pyro copper is $40/mt, and wet-process copper is $34/mt. High-quality copper B/L is $60/mt, mainstream pyro copper is around $54/mt, and wet-process copper is $48/mt. CIF B/L EQ copper is $0-8/mt, with an average price of $4/mt.