LC Price Spread Widens Again; Trading in the USD Copper Market Remains Sluggish [SMM Yangshan Spot Copper]

Published: Feb 26, 2025 11:56 (GMT+8)

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February 26, 2025: Today's warehouse warrant prices were $34-44/mt, QP March, with an average price down $1/mt compared to the previous trading day; B/L prices were $48-60/mt, QP March, with the average price unchanged from the previous trading day. EQ copper (CIF B/L) was $0-8/mt, QP March, with the average price unchanged from the previous trading day. The quotations referred to cargoes arriving in mid-to-early March.

During the day, the SHFE/LME price ratio for the SHFE copper 2503 contract was around -1,250 yuan/mt. LME copper 3M-Mar was at C$7.83/mt, and the March date to April date was around Back $0.83/mt. Due to Trump's investigation into copper imports, the LC price spread further widened to nearly $1,000/mt. Meanwhile, the market's expectation for SHFE/LME price ratio recovery decreased as LME copper surged, leading to sluggish spot market transactions, with most suppliers adopting a wait-and-see attitude.

Currently, the actual transaction price for pyro high-quality copper warehouse warrants is $44/mt, mainstream pyro copper is $39/mt, and wet-process copper is $34/mt. High-quality copper B/L prices are $60/mt, mainstream pyro copper is around $54/mt, and wet-process copper is $48/mt. CIF B/L EQ copper is $0-8/mt, with an average price of $4/mt.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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