Import Traders Raised the Prices to Ship Yesterday amid Import Profits of 2206 Contract

SHANGHAI, May 10 (SMM) - Yangshan copper premiums stood at $45-85/mt under warrants today. The average price was $65/mt, $8/mt higher than the previous trading day. Quotes under B/L stood at $40-70/mt. The average price was $55/mt, $11/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 $2.9/mt. The import profits were around 400 yuan/mt over the 2205 copper contract as of 10 o’clock.

Yesterday, the price ratio improved, and the import profit window of the 2206 contract opened, hence the traders held firm to their prices. At the same time, the exchange rate of RMB against the US dollar further depreciated, and investors seized the opportunity to operate. There were many offers and inquiries in the market.  In terms of warrants, offers and inquiries were active yesterday. Traders were confident about the price ratio after the delivery of warrants and raised their quotes. Besides, the right to transfer the warrant was relatively easy, so more buyers and inquiries appeared. Last night, domestic pyro-copper was traded at more than $70/mt. On the bill of lading front, the lower premiums over the warrants were more attractive to the traders whose letter of credit is about to expire, hence the buying interest gradually picked up.

At present, the high-quality pyro-copper premiums were around $85/mt under warrants, and mainstream pyro-copper and hydro-copper were quoted at $70/mt and $45/mt respectively. The high-quality copper under the bill of lading was quoted at $70/mt, and that of mainstream pyro-copper and hydro-copper were $60/mt and $40/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.