Copper Market Sees Significant Price Declines Amid Inverted SHFE/LME Ratio
The copper market saw significant declines in prices and demand on September 21. The SHFE/LME price ratio fell into inversion, indicating a weakening trend in copper prices. Domestic copper cathode social inventory continued to decline, but domestic spot premiums rose to high levels.
Suppliers were reluctant to sell at low prices, resulting in limited offers and bids in early trading. This left the market relatively quiet, with few quotations being heard. Mainstream quotations for registered ER copper warrants were around $120-130/mt, while mainstream quotations for EQ copper arriving in October were at $60-70/mt.
The average warrant price fell by $5/mt to $119/mt, and the average B/L price fell by $3/mt to $113/mt. The average EQ copper (CIF B/L) price also fell by $10/mt to $55/mt, with quotations referencing cargoes arriving from September to mid-to-late October.