LME backwardation structure narrows, buyers and sellers continue to tug-of-war, market remains sluggish [SMM Yangshan spot copper]

On September 4, the average warrant price fell by $2/mt from the previous trading day to $72/mt (price range: $66-78/mt); the average B/L price remained flat from the previous trading day at $75/mt (price range: $70-80/mt); the average EQ copper (CIF B/L) price remained flat from the previous trading day at $55/mt (price range: $50-60/mt), with quotations referencing September-arrival cargoes.

Today, the LME backwardation structure narrowed somewhat, which fed through to higher quotations for September-date cargoes in the market, while current demand was mediocre and downstream buyers showed limited willingness to take delivery. For October-date cargoes, most suppliers chose to remain on the sidelines, making it difficult for buyers and sellers to reach consensus, and the market remained sluggish. It was heard that today, registered B/Ls for early-September arrival with September QP traded at around $60/mt, registered warrants for early September with September QP were quoted at $65/mt, and mainstream quotations for September-arrival EQ copper with October QP stood at around $55-60/mt.