SHFE/LME price ratio continues to recover; upstream-downstream tug-of-war persists; physical trading sluggish [SMM Yangshan spot copper]

Average warrant premiums on August 19 rose $2/mt from the previous trading day, reported at $87/mt (price range $79-95/mt); B/L average premiums rose $2/mt, reported at $82/mt (price range $77-87/mt); EQ copper (CIF B/L) average premiums remained flat, reported at $53/mt (price range $45-61/mt), with offers referencing August-early September arrivals.

Recently, the copper price center pulled back, and the import SHFE/LME price ratio continued to recover, but downstream recognition of premiums was limited, demand recovery was moderate, and buying and selling remained in a tug-of-war, resulting in sluggish actual transactions. It was heard today that an offer for EQ copper arriving in late August was at $60/mt, and an offer for EQ copper arriving in September was at $70/mt.