Base Metal Prices Rebound, Yangshan Copper Premiums Soar to USD 100/mt

SHANGHAI, Apr. 2 (SMM) – Shanghai base metals prices rebounded today, and Yangshan copper premiums broke through USD 100/mt, up from the USD 95/mt hit last week. SMM anticipates Yangshan copper premiums should reach USD 120-130/mt in April.

Spot premiums for copper expanded to RMB 120-220/mt today, with downstream buyers entering the market at lower prices.

Spot aluminum prices in Shanghai were RMB 14,410-14,430/mt, with discounts of RMB 70-50/mt. Low-iron aluminum prices were around RMB 14,610/mt. Downstream buyers were not actively purchasing ahead of the Qingming Festival, with the market muted.

Quotes in south China remained firm around RMB 14,460/mt, with traders and downstream buyers actively purchasing, and the market brisk.

Quotes for Chihong Zn & Ge were RMB 14,280/mt, with spot discounts against SHFE three-month lead contract prices of RMB 70/mt. Nanfang brand was quoted at RMB 14,260/mt, and spot discounts of Tongguan brand against SHFE 1304 lead contract prices were RMB 20/mt. Downstream buying interest improved as spot lead prices stopped falling, causing transactions to improve.

Spot discounts of #0 zinc against SHFE 1306 zinc contract prices were RMB 80-100/mt, with traded prices between RMB 14,570-14,590/mt. #1 zinc supply was tight. Smelters held back goods and plan to cut or suspend production. Traders also stood on the sidelines, and downstream buyers purchased on an as-needed basis due to a lack of orders and pessimism, keeping overall transactions muted.