Copper Import Market Stagnated due to Weak Price Ratio and Deterioration of Pandemic

SHANGHAI, Apr 6 (SMM) - Quotes of import premiums for warrants stood at $10-$30/mt today. The average price was $20/mt under warrants, which is stable compared with the last trading day. Quotes under B/L stood at $12-29/mt. The average price was $20.5/mt, flat from the previous trading day, with the quotation period of May. The quotation refers to the prices of goods arriving at ports in the second half of April. The discounts of LME 0-3 were $10.5/mt. The import losses were around 1,350 yuan/mt over the copper 2205 contract.

The import market had few transactions due to the weakening price ratio and the deteriorating pandemic. As of April 6, there were more than 16,700 asymptomatic cases in Shanghai, and 3,004 confirmed cases. According to the SMM survey, with the deterioration of the pandemic, Shanghai continues to implement control measures, and the logistics operation is limited. Due to the pandemic prevention and control, the warehouses of C. Steinweg and CMST Development remained closed. Part of the banking business was suspended, and the downstream was unwilling to come to Shanghai to pick up the goods. Besides, import traders were working from home. There was no quotation and inquiry in the market today. Import traders are quiet and waiting for the market to be unsealed and warmer.

At present, the high-quality pyro-copper premiums were around $30/mt under warrants, and mainstream pyro-copper and hydro-copper were quoted at $25/mt and $10/mt respectively. The high-quality copper under the bill of lading was quoted at $29/mt, and that of mainstream pyro-copper and hydro-copper were $24/mt and $12/mt respectively.

Disclaimer:

The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.