SHFE/LME price ratio weakened significantly with light trading volume, and U.S. dollar copper premiums weakened [SMM Yangshan spot copper]

        May 28, 2025 News: Today, warrant prices ranged from $82 to $96/mt, with QP June, and the average price fell by $5/mt compared to the previous trading day. B/L prices ranged from $90 to $122/mt, with QP June, and the average price fell by $3/mt compared to the previous trading day. EQ copper (CIF B/L) prices ranged from $64 to $76/mt, with QP June, and the average price fell by $7 compared to the previous trading day. Quotations referenced cargo arriving in early June.

        Market transactions weakened during the day, with the quotation range widening after all CME registered B/Ls were sold out yesterday. Premiums for domestic warrants, B/Ls, and EQ B/Ls declined due to the worsening SHFE/LME price ratio and the expansion of the LME backwardation structure, and there were discrepancies in the buyer's willingness to purchase and the seller's offers. It was heard that traders were offering domestic pyrometallurgy B/Ls for late May at around $90-100, with QP June; general pyrometallurgy was quoted at around $100-120, but there were few transactions; domestic warrants were quoted at around $85, with QP June; EQ B/Ls arriving in early June were quoted at $75, with QP June-July. Overall, market transactions weakened. It should be noted that the LME backwardation structure expanded due to rumors of Russian copper cancellations. As export profits have reached the smelter's export profit threshold, attention should be paid to short-term inventory changes in bonded zones.