Domestic Premiums Drive SHFE/LME Price Ratio Recovery, Active Inquiries and Offers Post-Holiday, USD Copper Premiums Rise [[SMM] Yangshan Copper Premiums]

        On May 6, 2025: Today, warrant prices ranged from $96 to $104/mt, with QP in May, and the average price increased by $6/mt compared to the previous trading day. B/L prices ranged from $105 to $125/mt, with QP in May, and the average price remained unchanged compared to the previous trading day. EQ copper (CIF B/L) prices ranged from $65 to $75/mt, with QP in May, and the average price remained unchanged compared to the previous trading day. Quotations referenced cargo arrivals in mid-to-early May.

        Before the holiday, LME inventory continued to decline. According to market news, large traders concentrated on cargo pick-up before the holiday. After the holiday, the LME's near-term backwardation structure widened. Meanwhile, during China's Labour Day holiday, social inventory decreased instead of increasing. The high backwardation in SHFE led to a rebound in the SHFE/LME price ratio, and the market held significant expectations for premium increases. It was heard that among traders, domestic pyrometallurgy B/L offers for late May were at $110, with QP in May; general pyrometallurgy offers were at $120-130, with QP in May; domestic warrant offers were around $110, with QP in May; South American B/L offers for mid-to-early May were above $200, while EQ B/L offers were hard to find. Overall, buyers and sellers were active, but trading volume was limited on the first trading day after the holiday.