Yangshan Copper Premiums Rose Slightly amid Better Transactions of Warrants

SHANGHAI, Apr 28 (SMM) - Yangshan copper premiums stood at $20-48/mt under warrants today. The average price was $34/mt, $1.5/mt higher than the previous trading day. Quotes under B/L stood at $18-36/mt. The average price was $27/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 May. The premiums of LME 0-3 were $3.5/mt. The import losses were around 250 yuan/mt over the 2205 copper contract.

The SHFE/LME price ratio was stable today, and the market held optimistic expectations toward it, so there were a certain number of transactions in the import market. According to SMM research, the trading of warrants was more active than that of the bill of lading, because it is relatively easy to change the warrants. In terms of the bill of lading, the delivery of goods was mainly in the form of telex release. Some of the documents were transferred to agencies in Jiangsu before delivery, and the efficiency of circulation was relatively low. At present, arrivals and deliveries are allowed in compliance with the pandemic prevention and control plan. According to the survey today, the price ratio continued to be improved, arousing active inquiry about warrants. In terms of warrants, traders generally held firm to their prices due to the high pledge cost of US dollars. Traded price of pyro-copper stood at around $40/mt. On the bill of lading front, due to the difficulty in changing bills, the average price remained stable.

The high-quality pyro-copper premiums were around $48/mt under warrants, and mainstream pyro-copper and hydro-copper were quoted at $40/mt and $20/mt respectively. The high-quality copper under the bill of lading was quoted at $36/mt, and that of mainstream pyro-copper and hydro-copper were $25/mt and $18/mt respectively.

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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.