SHFE/LME Price Ratio Rises, Market Continues High Offers; Buyers and Sellers in Tug-of-war [SMM Yangshan Spot Copper]

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, the impact of Typhoon Bavi is expected to persist, and downstream copper processing enterprises are still releasing their pre-storm stockpiling demand. Buying and selling sentiment has continued to rebound, with market transactions being relatively active. SMM data shows that social inventory in the Shanghai region recorded 104,800 mt, down 17,600 mt WoW, while social inventory in the Jiangsu region recorded 31,000 mt, down 5,000 mt WoW. According to SMM, the rapid destocking of social inventory, coupled with the shift of the next-month price spread into a backwardation structure, has enhanced the delivery returns on open interest held by suppliers. Some suppliers expect that spot premiums still have room to rise in the short term, and their willingness to sell at low prices is weak. Although the import window has opened, the spot market will see limited incremental supply in the short term considering logistics and customs clearance delays. Overall, spot prices against the SHFE copper 2607 contract are expected to maintain their current premium level tomorrow.