SHFE/LME Price Ratio Unfavorable, Nearby Backwardation Structure Widened, Yangshan Copper Premiums Slightly Dipped [SMM Yangshan Copper Spot]

Published: Aug 4, 2026 13:19

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The average warrant price on August 4 fell $1/mt from the previous trading day to $110/mt (price range: $106-114/mt); the average B/L price dropped $1/mt to $105/mt (price range: $100-110/mt); and the average price for EQ copper (CIF B/L) declined $1/mt to $71/mt (price range: $67-75/mt), with quotations referencing cargoes arriving in August.

The SHFE/LME price ratio for nearby contracts remained in inverted territory while the backwardation structure continued to widen. Market offers increased, with some suppliers slightly lowering their quotations under pressure. However, the overall supply-demand weakness persisted, and buyers and sellers remained locked in a standoff. EQ copper arriving in early August was reportedly quoted at $68-70/mt, registered B/L for August arrival traded at $113/mt with mainstream quotations at $110-120/mt, and registered warrants traded around $110/mt.

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