SHFE/LME price ratio recovers while activity recovery remains limited, market deals hard to find [SMM Yangshan spot copper]

On September 2, the average warrant price rose by $4/mt from the previous trading day to $76/mt (price range: $72-80/mt); the average B/L price rose by $4/mt from the previous trading day to $74/mt (price range: $68-80/mt); the average EQ copper (CIF B/L) price rose by $10/mt from the previous trading day to $40/mt (price range: $30-50/mt), with quotations referencing September-arrival cargoes.

The SHFE/LME price ratio recovered today, while market activity remained limited. As the LME backwardation structure remained elevated, downstream buyers showed low interest in September-date cargoes, while some October-date cargo quotations were relatively firm, and suppliers held a strong wait-and-see sentiment, making deals hard to conclude. It was heard that mainstream quotations for September registered warrants were at $70-80/mt today, and mainstream quotations for September-arrival EQ copper were around $50-60/mt.