Copper Importers Continuously Raised the Premiums due to the Rising Profits

SHANGHAI, May 6 (SMM) - Yangshan copper premiums stood at $33-68/mt under warrants today. The average price was $50.5/mt, $7/mt higher than the previous trading day, with the quotation period of May. Quotes under B/L stood at $25-50/mt. The average price was $37.5/mt, $6.5/mt higher than the previous trading day, with the quotation period of June. The quotation refers to the prices of goods arriving at ports in the second half of May. The premiums of LME 0-3 were $23/mt. The import profits were around 150 yuan/mt over the 2205 copper contract.

LME copper inventory increased by 14,000 mt, suppressing the copper prices. In China, the low social inventory supported the prices and improved the SHFE/LME price ratio. What’s more, the high premiums in China expanded the import profits to 800 yuan/mt. With the rising import profits, importers continuously raised the premiums. According to the survey today, in early trading, the traded price of domestic pyro-copper stood at $65/mt. On the bill of lading front, some bills were traded at $50/mt in overnight trading. In the early trading, buyers offered $40/mt to Japanese and South Korean pyro-copper, with the quotation period of June, and the market saw no transactions.

For now, the high-quality pyro-copper premiums were around $68/mt under warrants, and mainstream pyro-copper and hydro-copper were quoted at $63/mt and $33/mt respectively. The high-quality copper under the bill of lading was quoted at $50/mt, and that of mainstream pyro-copper and hydro-copper were $44/mt and $25/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.