Bonded Warehouse Warrants Bottom Out with Firm Transactions, but Overall Trading Remains Inactive [SMM Yangshan Spot Copper]

        January 3, 2025: Today, warehouse warrant prices were $61-75/mt, QP January, with an average price up $2/mt compared to the previous trading day; B/L prices were $57-71/mt, QP February, with an average price up $1/mt compared to the previous trading day; EQ copper (CIF B/L) was $12-26/mt, QP February, with an average price down $1/mt compared to the previous trading day, with quotations referencing cargo arrivals in late January and early February.

        During the day, the SHFE/LME price ratio for the SHFE copper 2502 contract was around -90 yuan/mt, LME copper 3M-Feb was at C$50.65/mt, and the January 2501-February 2502 spread was around C$44/mt. There were small transactions for both warehouse warrants and B/L during the day, with deliveries concentrated before the holiday. Due to the depletion of bonded warehouse inventory, the center of warehouse warrant spot prices moved upward. Overall, the execution of 2024 long-term contracts has gradually concluded, and the market remains largely in a wait-and-see mode, with cautious pre-holiday stock-building activities.

        Currently, the spot price for pyro high-quality copper warehouse warrants is $75/mt, mainstream pyro $68/mt, and hydrometallurgical $61/mt; high-quality copper B/L is $71/mt, mainstream pyro around $65/mt, and hydrometallurgical $57/mt; CIF B/L EQ copper is $12-26/mt, with an average price of $19/mt.