Weak demand keeps market cautious, buyers and sellers in stalemate [SMM Yangshan spot copper]

On September 1, the average warrant price fell by $3/mt from the previous trading day to $72/mt (price range: $64-80/mt); the average B/L price was flat from the previous trading day at $70/mt (price range: $60.5-80/mt); the average EQ copper (CIF B/L) price was flat from the previous trading day at $30/mt (price range: $20-40/mt), with quotes referencing September-arrival cargoes.

Copper prices rose, suppressing consumption demand, while the LME nearby backwardation structure remained elevated. Combined with ongoing port congestion, downstream demand was weak. Meanwhile, copper cathode inventories in China and outside China were low, and suppliers were unwilling to sell at low prices, leaving buyers and sellers in a stalemate. Under the current SHFE/LME price ratio and structure, most traders opted to observe and execute long-term contracts, leaving the spot market sluggish. It was heard that mainstream quotations for September registered warrants were $65-70/mt today, and mainstream quotations for September-arrival EQ copper were around $55/mt.