SHFE/LME Price Ratio Weakened During the Day, Offers Firm but Transactions Lackluster [SMM Yangshan Spot Copper]

January 6, 2025: Today, warehouse warrant prices ranged from $63/mt to $77/mt, QP January, with an average price up $2/mt compared to the previous trading day; B/L prices ranged from $57/mt to $71/mt, QP February, with the average price unchanged from the previous trading day; EQ copper (CIF B/L) ranged from $12/mt to $26/mt, QP February, with the average price unchanged from the previous trading day. The quotations referenced cargo arrivals in mid-to-late January and early February.

During the day, the SHFE/LME price ratio for the SHFE copper 2502 contract was around -280 yuan/mt, LME copper 3M-Feb was at C$49.66/mt, and the 2501-month date to 2502-month date was around C$45/mt. Intraday warehouse warrant and B/L quotations were scattered, with limited transactions for pre-date B/L. Bonded warehouse warrant prices remained high, but actual transactions were also inactive. Overall, the price ratio weakened, and market activity was low.

Currently, the actual transaction price for pyro high-quality copper warehouse warrants is $77/mt, mainstream pyro $70/mt, and wet-process $63/mt; high-quality copper B/L is $71/mt, mainstream pyro around $65/mt, and wet-process $57/mt; CIF B/L EQ copper is $12/mt to $26/mt, with an average price of $18/mt.