SHFE-LME Price Ratio Improves Amid Sluggish Spot Copper Transactions
The Shanghai Futures Exchange (SHFE)/London Metal Exchange (LME) price ratio improved on September 29, with the LME nearby contract experiencing a notable narrowing of its backwardation structure.
According to SMM Yangshan spot copper data, the average warrant price rose by $2/mt from the previous trading day to $119/mt, while the average B/L price increased by $2/mt to 114 yuan/mt. The EQ copper (CIF B/L) price also saw a rise of $1/mt to $53/mt, with quotes referencing cargoes arriving in late September and October.
Despite market inquiry activity picking up, offers for spot imported copper were limited and relatively high, resulting in buyers and sellers being far apart. This was partly due to some market participants having already entered the holiday period, leading to sluggish actual transactions.