Yangshan Copper Premiums Continued to Rise

Published: Aug 11, 2021 10:17

Save

Yangshan copper premiums with a quotation period in September stood at $42-67/mt under warrants during August 2-6, and between $35-64/mt under bill of lading (B/L). The SHFE/LME copper price ratio stood at 7.34 as of August 6.

SHANGHAI, Aug 11 (SMM) - Yangshan copper premiums with a quotation period in September stood at $42-67/mt under warrants during August 2-6, and between $35-64/mt under bill of lading (B/L). The SHFE/LME copper price ratio stood at 7.34 as of August 6.

Brisk trades pushed import premiums higher significantly. The influx of imported copper, driven by a higher SHFE/LME copper price ratio, lowered premiums in the domestic spot market. Lower spot premiums eroded into profits of imported cargoes, with import losses below 100 yuan/mt. Market demand was strong. However, offers were limited. Most of the sellers were optimistic over the market in the short term, holding onto their cargoes.

Quotes for mainstream pyro-copper under B/L stood at around $65/mt, and quotes for the two high-quality brands stood at around $70/mt, which was close to long-term contract levels. Traded import premiums under warrants rose amid tight supply. Quotes for hydro-copper rose to around $55/mt.

Import premiums for warrants are currently quoted at $49-67/mt, up $9/mt from a week earlier on average, and quotes for B/L stand at $46-64/mt, a rise of $17.5/mt. Domestic inventories currently stand at a low level. Spot premiums rebounded last Friday. This combined with higher import premiums kept import losses at a low level. Import premiums are expected to climb further amid brisk trades and sellers holding back cargoes.

Traded import premiums for high-quality pyro-copper currently stand at around $67/mt under warrants, $61/mt for mainstream pyro-copper and $49/mt for hydro-copper. On the B/L front, premiums are $64/mt for high-quality copper, $58/mt for mainstream pyro-copper, and $48/mt for hydro-copper. The quotation period is in September.

Copper inventories in the Shanghai bonded zone decreased 17,500 mt from July 30 to 392,100 mt as of August 6, a fourth straight week of decline.

Buyers have sought cargoes under warrants and bill of lading amid a favourable SHFE/LME copper price ratio, and this pushed up Yangshan copper premiums significantly. Increased customs declaration has driven continuous decline in bonded zone inventory.

Yangshan copper premiums

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

13 hours ago

"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"

Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan

13 hours ago

"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.

13 hours ago

Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions

After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."

13 hours ago