Early morning seller offers remain high, SHFE/LME price ratio weakens and few deals heard [SMM Yangshan copper premiums]

The average warrant price on July 22 rose $6/mt from the previous trading day to $115/mt (price range $110-120/mt); the average B/L price rose $4/mt to $112/mt (price range $108-116/mt); the average price for EQ copper (CIF B/L) rose $5/mt to $79/mt (price range $75-83/mt), with offers referencing cargoes arriving from mid-to-late July to late August.

The tight availability of marketable cargoes continued to support premiums. The COMEX-LME price spread widened, the ratio of cancelled warrants on the LME rose, and near-month contracts shifted to a backwardation structure. However, the weakening SHFE/LME price ratio and higher copper prices limited downstream rigid demand, resulting in only sporadic deals. It was heard that yesterday, a registered B/L for late-July arrival traded at $115/mt. Today, mainstream registered B/L offers for late-August arrival were quoted at $115-120/mt, and EQ copper for August arrival was quoted at $83-90/mt.