Yangshan Copper Premiums Rose Sharply as the Import Window Opened Temporarily

SHANGHAI, May 19 (SMM) - Yangshan copper premiums stood at $68-88/mt under warrants today. The average price was $78/mt, $5/mt higher than the previous trading day. Quotes under B/L stood at $60-83/mt. The average price was $71.5/mt, $12/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 late May and in the first half of June. The premiums of LME 0-3 were $15.1/mt. The import losses were around 220 yuan/mt over the 2206 copper contract as of 10 a. m. today.

The spot import window opened overnight and this morning as the price ratio picked up today, heating the market transactions. According to the survey today, quotes of warrants rose. However, LME copper was still in the backwardation structure. The warrants traders held a strong willingness to ship under the pressure of capital cost, and the increase in premiums was less than that in the bill of lading. Different brands of high-quality copper were quoted at $88/mt and $83/mt, while the mainstream pyro-copper was quoted at $84/mt. Some buyers said that the quotation was more in line with their expectations. In terms of bills of lading, under the background of logistics recovery and the pick-up of downstream goods, traders raised the premiums. According to the SMM survey, goods can be picked up at docks normally, the time of switching bills is gradually normalised, and the documents in the bank and express delivery can flow smoothly. The buyers were willing to pick up goods, and the demand became better. In the early trading, the market saw mainstream pyro-copper trading at $80/mt.

At present, the high-quality pyro-copper premiums were around $88/mt under warrants, and mainstream pyro-copper and hydro-copper were quoted at $80/mt and $68/mt respectively. The high-quality copper under the bill of lading was quoted at $83/mt, and that of mainstream pyro-copper and hydro-copper were $75/mt and $60/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.