LME Backwardation Widen Amid Weak Demand and Sluggish Trading

The LME backwardation structure has continued to widen, reaching a high level on August 27. The average warrant price remained flat at $85/mt, while the average B/L price also stayed steady at $80/mt. The SHFE/LME price ratio remains sharply inverted.

The market is experiencing weak demand, with traders showing low willingness to purchase September-date cargoes. Downstream demand has been sluggish, and suppliers are reluctant to sell at low prices, choosing instead to remain on the sidelines.

Mainstream quotations for registered warrants/B/Ls arriving from late August to early September were at $80-90/mt, while those for EQ copper arriving in early September were around $50/mt. The trading pattern remains sluggish due to these factors.