SHFE/LME Price Ratio Weakens and Seller Offers Remain Firm, Market Continues Supply-Demand Weakness [SMM Yangshan Spot Copper]

On July 20, the average warrant price rose $3/mt from the previous trading day to $103/mt (price range: $98-108/mt); the average B/L price rose $2/mt to $102/mt (price range: $96-108/mt); the average CIF B/L price for EQ copper remained flat from the previous trading day at $64/mt (price range: $60-68/mt), with quotes referencing cargoes arriving from mid-to-late July to mid-to-late August. The SHFE/LME price ratio weakened on the day, but constrained by still tight availability of cargoes, domestic copper cathode inventories continued to decline. Sellers were scarce and maintained firm offers, while buyers and sellers remained locked in a tug-of-war, extending the supply-demand weakness. It was heard that registered B/L for late July arrival were offered at $110-120/mt, and a small quantity of EQ copper for late August arrival was offered at $80/mt. Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations. Register to Continue Reading Gain access to the latest insights in metals and new energy Already have an account? Sign in here