Copper prices strengthen, suppressing consumer demand; SHFE/LME price ratio inverted, market quiet [SMM Yangshan spot copper]

The warrant average price on August 6 fell $2/mt from the previous trading day to $104/mt (price range: $98-110/mt); the B/L average price fell $1/mt from the previous trading day to $100/mt (price range: $95-105/mt); the EQ copper (CIF B/L) average price fell $1/mt from the previous trading day to $67/mt (price range: $62-72/mt), with quotations referencing cargoes arriving from August to early September.

The SHFE/LME price ratio was significantly inverted, and coupled with stronger copper prices weighing on downstream consumption, the market was relatively quiet today, with spot premiums showing a retreat from highs. However, as the North American siphoning effect persists, the overall supply of imported copper is expected to remain limited, providing support for spot premiums on the downside. In addition, some smelters are showing export expectations, so the domestic export situation in the future warrants close attention. The mainstream quotations for August registered warrants were heard at $105-110/mt today, with mainstream quotations for registered B/L arriving from August to early September around $105/mt.