SHFE/LME Price Ratio Weakens Again Amid Sluggish Copper Transactions

The Shanghai Metals Market (SMM) reported that on August 3, the warrant average price of copper dropped $1/mt to $111/mt. The B/L average price also fell by $1/mt to $106/mt. Meanwhile, the EQ copper (CIF B/L) average price decreased by $2/mt to $72/mt.

The SHFE/LME price ratio weakened again on August 3, with the backwardation structure of nearby contracts widening. Market participants were mostly wait-and-see, suppliers' offers remained firm, and actual transactions were sluggish. Premiums did not show a significant pullback yet, with EQ copper arriving in early August offered at $70/mt and mainstream quotations for registered B/L arriving in August around $110-120/mt.