Yangshan Copper Premiums Continued to Fall amid Quiet Trades

SHANGHAI, Sep 6 (SMM) – Yangshan copper premiums with a quotation period in September were $88-112/mt under warrants during August 30-September 3, and between $76-100/mt under bill of lading (B/L) with the quotation period in October. The SHFE/LME copper price ratio was 7.37 as of September 3.

Trading activity in the import market was subdued last week. The market lacked guidance on the ratio on Monday due to the closure of LME. Buyers and sellers returned to the market on Tuesday, but the overall transactions were weak. The copper price ratio for near-month contract was better than that of forward-month contract. Import losses were below 200 yuan/mt against the SHFE 2109 contract, and there was a small profit at the end of the week. LME cash to the three-month contract turned into contango structure, supporting quotes for goods under warrants and goods slated to arrive in the short term.