Copper Price Ratio Recovers Amid Sluggish Physical Trading
The SHFE/LME price ratio has been recovering in recent times, but this trend is not reflected in physical trading activity. According to Shanghai Metals Market (SMM), average warrant premiums for copper on August 19 rose by $2/mt from the previous day, reaching a reported price range of $79-95/mt.
Similarly, B/L average premiums also increased by $2/mt, with prices ranging from $77-87/mt. However, EQ copper (CIF B/L) average premiums remained flat at $53/mt, with offers referencing August to early September arrivals.
Despite the recovering import SHFE/LME price ratio, downstream recognition of premiums was limited, and demand recovery was moderate. As a result, buying and selling continued in a tug-of-war, leading to sluggish actual transactions.