Yangshan Copper Premiums Lack Momentum Amid Weakening SHFE/LME Price Ratio

The Shanghai Metals Market reported that the average warrant price for Yangshan copper remained unchanged on July 31, standing at $112/mt, while the average B/L price also remained unchanged, sitting at $107/mt.

However, the SHFE/LME price ratio weakened slightly, with the backwardation structure for nearby contracts widening. This weakening of expectations of tightness in available supply and sluggish downstream buying interest prevented further upward momentum in premiums.

Mainstream quotations for registered B/Ls arriving in August were around $115-120/mt, while EQ copper arriving from August to early September was quoted at $75-85/mt. It's worth noting that EQ copper arriving in late August was traded at $75/mt.