The SHFE/LME price ratio is inverted and the backwardation structure widens, downstream purchase willingness is weak [SMM Yangshan spot copper]

Published: Aug 26, 2026 13:42

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On August 26, the average warrant price fell by $3/mt from the previous trading day to $85/mt (price range $80-90/mt); the average B/L price fell by $5/mt to $80/mt (price range $75-85/mt); the average EQ copper (CIF B/L) price remained flat from the previous trading day at $38/mt (price range $30-46/mt), with quotations referencing cargoes arriving from late August to mid-September.

Today, the import price ratio (SHFE/LME) worsened again, and the LME near-end backwardation structure widened, with downstream demand performing poorly. Some traders indicated that they had largely lost purchase willingness for September date cargo. However, ongoing port congestion prevented a sharp collapse in spot premiums. Additionally, with the export window opening, attention should be paid to subsequent export activities by smelters. Today, mainstream quotations for registered warrant B/Ls arriving from late August to early September were heard at 85-95, while those for EQ copper arriving in early September were at $50/mt.

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