Yangshan Copper Premiums Fell Further Amid Off-Season

Yangshan copper premiums with a quotation period in August stood at $28-38/mt under warrants during July 24-28, with the average down $8/mt from a week earlier. Those stood between $27-37/mt under bill of lading with a quotation period in August, with the average down $8/mt. As of July 28, the SHFE/LME copper price ratio stood at 8.04, and import losses stood at 580.13 yuan/mt.

The SHFE/LME copper price ratio did not improve last week. Yangshan copper premiums continued to fall during the off-season. In terms of warrants, the supply and demand improved. Some domestic cargoes under warrants will be delivered to the bonded zone this week, and this will weigh on Yangshan copper premiums. In terms of bills of lading, import premiums plunged amid poor demand. Traded import premiums were extremely low. As of last Friday, traded import premiums for high-quality pyro-copper stood at $35/mt under warrants, and $27-30/mt for mainstream pyro-copper. Those for hydro-copper stood at $25/mt. On the B/L front, premiums stood at $34/mt for high-quality copper, $30/mt for mainstream pyro-copper, and $25/mt for hydro-copper.

There will have been concentrated shipments arrivals of imported copper from the end of last week to the beginning of this week. Typhoon Doksuri mainly affected Fujian Province. Imported copper from Chile, Japan and South Korea did not berth in Xiamen. Shipments from Peru were not heard to be delayed due to the typhoon. Some cargoes which have not been purchased by the market are expected to be delivered 4-5 days after arriving, without immediate impact on the domestic spot market. Quotes of import premiums for cargoes arriving in August also slid during the off-season.