Copper Prices Surge While SHFE/LME Price Ratio Weakens; Transaction Center for Forward B/Ls Declines [SMM Yangshan Spot Copper]

       January 16, 2025: Today's warehouse warrant prices were $71-$81/mt, QP January, with the average price unchanged from the previous trading day; B/L prices were $56-$70/mt, QP February, with the average price down by $3/mt compared to the previous trading day; EQ copper (CIF B/L) was $6-$20/mt, QP February, with the average price unchanged from the previous trading day, with quotations referencing cargo arrivals in late January and early February.

       During the day, the SHFE/LME price ratio for the SHFE copper 2502 contract was around -550 yuan/mt, LME copper 3M-Feb was at C$63.62/mt, and the January 2501 to February 2502 spread was around C$51/mt. Due to copper prices surging, the SHFE/LME price ratio weakened, and some suppliers held a bearish view on future consumption, causing the center of transactions for long-term B/L to pull back. Warehouse warrant quotations remained firm, with the SHFE/LME price ratio for the SHFE copper 2502 contract around -100 yuan/mt.

       Currently, the actual transaction price for pyro high-quality copper warehouse warrants was $81/mt, mainstream pyro at $71/mt, and wet-process quotations were scarce; high-quality copper B/L was $70/mt, mainstream pyro around $63/mt, and wet-process at $56/mt; CIF B/L EQ copper was $6-$20/mt, with an average price of $13/mt.