Yangshan Copper Premiums Rebound as SHFE/LME Price Ratio Improves
This week's Yangshan copper premium warrants traded at $74-85/mt, QP September, with an average price of $79/mt. The weekly average transaction price range for B/L was $75-85/mt, QP October, with an average price of $85/mt. EQ copper CIF B/L was $46-59/mt, QP October, with an average price of $52/mt.
As of September 7, the SHFE/LME copper price ratio for LME copper against the SHFE copper 2610 contract, excluding exchange rates, was 1.1342, with an import loss of approximately 368.3 yuan/mt, nearly flat WoW. However, by Friday, the backwardation structure of the LME copper October date contract narrowed, and the September date and October date contracts shifted to a contango structure, with a carry spread of $47.06/mt.
Mainstream offers for pyrometallurgy registered copper B/L are scarce in the market; mainstream offers for pyrometallurgy registered copper warrants are around $110-120/mt; and mainstream offers for EQ copper are around $50-70/mt.