Copper Prices Rise, Weighing on Consumer Demand and Quiet Market

Copper prices are rising, which is weighing on consumer demand and making the market relatively quiet. According to Shanghai Metals Market, on August 6, the average price of copper warrants fell $2/mt from the previous trading day to $104/mt (price range: $98-110/mt).

The B/L average price also dropped by $1/mt from the previous day to $100/mt (price range: $95-105/mt), while the EQ copper (CIF B/L) average price fell by $1/mt from the previous trading day to $67/mt (price range: $62-72/mt).

The SHFE/LME price ratio was significantly inverted, and coupled with stronger copper prices affecting downstream consumption, the market is subdued. However, a limited supply of imported copper due to the North American siphoning effect is expected to support spot premiums on the downside.