China destocking, SHFE/LME price ratio rises, premiums trend further upward [SMM Yangshan spot copper]

On July 13, the average warrant price rose $3/mt day-on-day to $86/mt (price range $80-92/mt); the average B/L price rose $3/mt day-on-day to $85/mt (price range $80-90/mt); the average EQ copper (CIF B/L) price rose $1/mt day-on-day to $54/mt (price range $50-58/mt), with quotations referencing cargoes arriving from July to mid-August.

The SHFE/LME price ratio moved higher on the day, but limited by still scarce available cargoes in the market, actual transactions were thin. Domestic copper cathode social inventory continued to destock sharply, with premiums showing a further upward trend. The market heard that B/Ls registered in late July were quoted at $100/mt, while mainstream EQ quotations for late July to August were around $60/mt.