The Center of Transactions for Near-Port Cargo Declined, but Forward Month Offers Remained Firm [SMM Yangshan Spot Copper]

        February 19, 2025: Today, warehouse warrant prices were $48-62/mt, QP March, with an average price down by $4/mt compared to the previous trading day; B/L prices were $50-64/mt, QP March, with an average price down by $2/mt compared to the previous trading day. EQ copper (CIF B/L) was $4-12/mt, QP March, with the average price unchanged from the previous trading day. The quotations referenced cargo arrivals in late February and early March.

        During the day, the SHFE/LME price ratio for the SHFE copper 2503 contract was around -650 yuan/mt. LME copper 3M-Mar was at C$45.39/mt, and March-date to April-date was around C$21.5/mt. The price ratio continued to weaken during the day due to the narrowing of the near-month Contango structure, increased holding costs for suppliers, and the continuous arrival of warehouse warrants in bonded zones, which lowered the center of transactions for warehouse warrants and near-port cargo. However, far-month B/L quotations remained firm.

        Currently, the spot price for pyro high-quality copper warehouse warrants is $62/mt, mainstream pyro $55/mt, and wet-process $48/mt. High-quality copper B/L is $64/mt, mainstream pyro $57/mt, and wet-process $50/mt. CIF B/L EQ copper is $4-12/mt, with an average price of $8/mt.