China's Copper Cathode Export Volumes Hit by Tight Supply
Tight copper cathode supply in China has limited actual export volumes for smelters. In late September, the Shanghai Futures Exchange (SHFE) / London Metal Exchange (LME) copper price ratio retreated to 7.6, widening import losses by over 1,500 yuan/mt.
However, data from SMM showed that on September 23, the #1 copper cathode spot price against the SHFE copper 2610 contract held a premium of 1,200-1,480 yuan/mt. On September 21, SMM's survey revealed that major China regions' copper inventories had fallen to 74,800 mt, placing them at around the 1st percentile over the past year.
The limited available cargoes and oversold positions among smelters contributed to the scarcity. The survey also found that smelters with copper concentrate processing trade agreements and export qualifications have no significant export plans for now.