Copper Prices Rise While SHFE/LME Price Ratio Continues to Weaken; Transactions Hard to Find in the USD Copper Market [SMM Yangshan Spot Copper]

January 7, 2025: Today, warehouse warrant prices ranged from $63/mt to $77/mt, QP January, with the average price unchanged from the previous trading day; B/L prices ranged from $56/mt to $70/mt, QP February, with the average price down by $1/mt from the previous trading day; EQ copper (CIF B/L) ranged from $9/mt to $23/mt, QP February, with the average price down by $3/mt from the previous trading day. The quotations referenced cargoes arriving in mid-to-late January and early February.

During the day, the SHFE/LME price ratio for the SHFE copper 2502 contract was around -430 yuan/mt, LME copper 3M-Feb was at C$56.31/mt, and the January 2501 to February 2502 spread was around C$47/mt. Due to rising copper prices and a weakening price ratio, near-month B/L prices were under downward pressure. Previously locked-in price ratio cargoes were gradually imported, and market offers and inquiries remained sluggish. On the warehouse warrant side, suppliers continued to hold back on sales, and offers were scarce in the early session.

Currently, the actual transaction price for pyro high-quality copper warehouse warrants is $77/mt, mainstream pyro copper is $70/mt, and wet-process copper is $63/mt. High-quality copper B/L prices are $70/mt, mainstream pyro copper is around $63/mt, and wet-process copper is $56/mt. CIF B/L EQ copper prices range from $9/mt to $23/mt, with an average price of $16/mt.