SHFE/LME price ratio deteriorates, transactions of non-registered B/L decline [SMM Yangshan spot copper]

        On May 21, 2025: Today, warrant prices ranged from $90 to $98/mt, with QP June, and the average price remained unchanged from the previous trading day. B/L prices ranged from $102 to $118/mt, with QP June, and the average price remained unchanged from the previous trading day. EQ copper (CIF B/L) prices ranged from $73 to $83/mt, with QP June, and the average price decreased by $1/mt from the previous trading day. The quotes referenced cargoes arriving in late May and early June.

        Trading volume in the market remained limited during the day. Suppliers increased their willingness to lower premiums and sell, but buyer interest was weak. Uncertainty increased regarding the LME backwardation structure in June, resulting in limited market transactions. It was heard that domestic pyrometallurgy B/L offers from traders in late May were around $105, with firm offers at $90-95/mt, QP June. General pyrometallurgy offers were around $105-110/mt, QP June. Domestic warrant offers were around $95/mt, QP June. EQ B/L offers for cargoes arriving in early June were around $80-85/mt, with buyer counteroffers at $60-65/mt, QP June. It was heard that a small volume of EQ was traded at $65/mt, QP June. Overall, late-month arrivals were still dominated by domestic copper, with non-registered spot orders remaining scarce. However, the SHFE/LME price ratio performed poorly, and premiums are expected to have further downside room in the future.