The SHFE/LME price ratio continues to deteriorate, warehouse warrant prices decline, and market transactions remain weak [SMM Yangshan Spot Copper].

        February 13, 2025: Today, warehouse warrant prices ranged from $56/mt to $70/mt, QP February, with an average price down by $2/mt compared to the previous trading day; B/L prices ranged from $54/mt to $72/mt, QP March, with the average price unchanged from the previous trading day; EQ copper (CIF B/L) ranged from $4/mt to $18/mt, QP March, with the average price unchanged from the previous trading day, with quotations referencing cargoes arriving in late February and early March.

        During the day, the SHFE/LME price ratio for the SHFE copper 2503 contract was around -600 yuan/mt, LME copper 3M-Mar was at C$65.72/mt, and the February 2502 to March 2503 date spread was around C$36/mt. Since yesterday afternoon, a large influx of domestic warehouse warrants has impacted the market, weakening the price ratio and driving transaction prices downward. The price spread between near-sea and far-sea B/L widened, with most buyers in the market adopting a wait-and-see approach, leading to poor spot transaction performance.

        Currently, the actual transaction price for pyro high-quality copper warehouse warrants is $70/mt, mainstream pyro copper is $63/mt, and wet-process copper is $56/mt; high-quality copper B/L is $72/mt, mainstream pyro copper is around $63/mt, and wet-process copper is $54/mt; CIF B/L EQ copper ranges from $4/mt to $18/mt, with an average price of $11/mt.