Sellers and Buyers Mismatch, Limited Market Transactions [SMM Yangshan Spot Copper]

December 18, 2024: Today's warehouse warrant prices were $48-62/mt, QP January, with the average price unchanged from the previous trading day; B/L prices were $41-55/mt, QP January, with the average price up by $3/mt compared to the previous trading day; EQ copper (CIF B/L) was $6-20/mt, QP January, with the average price up by $3/mt compared to the previous trading day. The quotations referred to cargoes arriving in late December and early January.

During the day, the SHFE/LME price ratio for the SHFE copper 2501 contract was around +146 yuan/mt, LME copper 3M-Jan was at C$75.76/mt, and the SHFE copper 2501-2502 spread was around C$44/mt. The SHFE/LME price ratio continued to improve compared to the previous trading day, and suppliers were highly active in offering quotes. There were limited December-arrival B/Ls available in the market, and the shipping schedules for January-arrival cargoes were not yet fully confirmed. Warehouse warrant supplies were also limited. Downstream buyers only showed purchase willingness for January-arrival B/Ls, and there was a divergence in psychological price levels between buyers and sellers, resulting in limited transactions. Additionally, there was a relatively large supply of EQ cargoes recently, and market transactions were moderate when the SHFE/LME price ratio performed well.

Currently, the warehouse warrant price for pyro high-quality copper was $62/mt, mainstream pyro copper was $55/mt, and wet-process copper was 48 yuan/mt. High-quality copper B/L prices were $55/mt, mainstream pyro copper was around $48/mt, and wet-process copper was $31/mt. CIF B/L EQ copper was $6-20/mt, with an average price of $13/mt.