SHANGHAI, Feb 20 (SMM) - Yangshan copper premiums with a quotation period in March stood at $17-32/mt under warrants during February 13-17, and between $15-35/mt under bill of lading (B/L) with a quotation period in March. As of February 17, the SHFE/LME copper price ratio stood at 7.71.
The recovery of domestic copper consumption has been slow after Chinese New Year holiday. Downstream purchasing remained lukewarm even as SHFE copper prices moved rangebound. Import losses against the SHFE front-month copper contract stood at 500-800 yuan/mt during the week. The demand for warrants was also sluggish.
In terms of B/L, the arrivals were deferred due to chronic import losses and lower shipping efficiency of Chilean ports caused by sea tides. The overall arrivals will remain low in the near future. Sellers raised the premiums in anticipation of tight arrivals in March. In this scenario, Yangshan copper premiums under B/L outstripped those under warrants.
