LC Price Spread Widens Again; Trading in the USD Copper Market Remains Sluggish [SMM Yangshan Spot Copper]

February 26, 2025: Today's warehouse warrant prices were $34-44/mt, QP March, with an average price down $1/mt compared to 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 C$7.83/mt, and the March date to April date was around Back $0.83/mt. Due to Trump's investigation into copper imports, the LC price spread further widened to nearly $1,000/mt. Meanwhile, the market's expectation for SHFE/LME price ratio recovery decreased as LME copper surged, leading to sluggish spot market transactions, with most suppliers adopting a wait-and-see attitude.

Currently, the actual transaction price for pyro high-quality copper warehouse warrants is $44/mt, mainstream pyro copper is $39/mt, and wet-process copper is $34/mt. High-quality copper B/L prices are $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.