In the week of July 15-18, the weekly average Yangshan copper premiums for B/L was -$4 to $10/mt, QP August, with an average of $3/mt, up $0.5/mt WoW; premiums for warrants were -$4 to $10/mt, with an average of $3/mt, up $3.5/mt WoW, QP August. EQ copper CIF B/L premium was -$55 to -$45/mt, with an average of -$50/mt, up $9/mt WoW, QP August. As of 15:00 on July 18, the SHFE 2408/LME price ratio was 8.11, with an import loss of around 313 yuan/mt.
According to the SMM survey, as of July 18, domestic bonded zone copper stocks increased by 4,200 mt to 102,700 mt compared to July 11. Among them, Shanghai bonded zone stocks increased by 4,500 mt to 98,700 mt, while Guangdong bonded zone stocks decreased by 300 mt to 4,000 mt. The continued increase in bonded warehouse stocks was mainly due to sellers' reluctance to sell at low prices after port arrivals, and with a significant price spread between SHFE front-month and next-month contracts, sellers chose to send their goods to bonded warehouses. Looking ahead, as the market still holds positive expectations for the SHFE/LME price ratio, it is expected that firm quotations will continue, and port arrivals may continue to enter bonded warehouses.
