Copper Price Ratio Slowly Recovers Amid Port Congestion

The price of copper on the Shanghai Futures Exchange (SHFE) relative to the London Metal Exchange (LME) has slowly begun to recover, but market sentiment remains subdued due to high backwardation on the LME.

Domestic ports in China continue to face congestion issues, which are affecting shipping schedules and causing delays for September-arrival cargoes. As a result, suppliers are hesitant to quote prices, keeping the overall market quiet.

The average warrant price fell by $2/mt from the previous trading day to $74/mt, while the average B/L price rose by $1/mt to $75/mt. The average EQ copper (CIF B/L) price rose by $15/mt to $55/mt, with quotations referencing September-arrival cargoes.

Mainstream quotations for September-arrival EQ copper were around $55-65/mt, while registered B/Ls for early-September arrival with September QP were quoted at $60/mt. Registered warrants traded at $95-100/mt, and EQ copper arriving in mid-to-late September traded at $55/mt.