Supply-Demand Mismatch Between Buyers and Sellers, Quiet Early Market with Few Transactions [SMM Yangshan Spot Copper]

January 10, 2025: Today's warehouse warrant prices were $66-80/mt, QP January, with the average price unchanged from the previous trading day; B/L prices were $58-72/mt, QP February, with the average price unchanged from the previous trading day; EQ copper (CIF B/L) was $6-20/mt, QP February, with the average price unchanged from the previous trading day. The quotations referred to cargoes arriving in mid-to-late January and early February.

During the day, the SHFE/LME price ratio for the SHFE copper 2502 contract was around -550 yuan/mt, LME copper 3M-Feb was at C$56.60/mt, and the January 2501 to February 2502 spread was around C$47/mt. Due to rising copper prices, the SHFE/LME price ratio deteriorated, and the market experienced a supply-demand mismatch with poor transactions. Buyers' demand focused on cargoes arriving in early-to-mid February, while offers were concentrated on mid-to-late January. Overall, the market remained sluggish with limited transactions.

Currently, the actual warehouse warrant price for pyro high-quality copper is $80/mt, mainstream pyro copper is $73/mt, and wet-process copper is $66/mt; high-quality copper B/L is $72/mt, mainstream pyro copper is around $65/mt, and wet-process copper is $58/mt; CIF B/L EQ copper is $6-20/mt, with an average price of $13/mt.