SHFE/LME Price Ratio Declines, Premiums Weaken Slightly, Market Watchers in Majority [SMM Yangshan Copper Spot]

On August 3, the warrant average price dropped $1/mt from the previous trading day to $111/mt (price range $106-116/mt); the B/L average price dropped $1/mt to $106/mt (price range $102-110/mt); the EQ copper (CIF B/L) average price dropped $2/mt to $72/mt (price range $68-76/mt), with quotations based on cargoes arriving in August.

On the first trading day of August, the SHFE/LME price ratio weakened again, and the backwardation structure of nearby contracts widened. There were mostly wait-and-see participants in the market, suppliers' offers remained relatively firm, actual transactions were sluggish, and premiums did not show a significant pullback yet. It was heard that today, EQ copper arriving in early August was offered at $70/mt, EQ copper arriving in September at $75-85/mt, and mainstream quotations for registered B/L arriving in August were around $110-120/mt.