Tight Supply, Suppliers Bullish, Holding Prices Firm; Downstream Wary of High Prices, Trading Sluggish [SMM Yangshan Spot Copper]

On July 3, the average warrant price remained flat from the previous trading day, quoted at $74/mt (price range $70-78/mt); the average B/L price remained flat, quoted at $74/mt (price range $68-80/mt); the average price for EQ copper (CIF B/L) remained flat, quoted at $45/mt (price range $40-50/mt), with quotations referencing cargoes arriving from July to early August.

With tight arrivals from July to August, suppliers, bullish on future consumption and the SHFE/LME price ratio, insisted on raising offer prices, while downstream exhibited fear of high prices. Buyers and sellers diverged, and trading activity in the market was lackluster. It is heard that B/L quotations for EQ copper arriving from early July to early August were in the range of $50-60/mt, and a small number of July registered warrants traded at $75/mt.