[SMM announcement] announcement on monthly quotation for New rough Copper processing fee-Shanghai Metals Market

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[SMM announcement] announcement on monthly quotation for New rough Copper processing fee

Translation 09:05:51AM May 19, 2019 Source:SMM

1. General rules of SMM Price Methodology

Shanghai Color Network (hereinafter referred to as SMM) is a completely independent third-party service organization that does not participate in any substantive transactions, but maintains close communication with the buyers or sellers of the transactions as market watchers or organizers. And provide relevant services to the market. SMM continuously develops, reviews and modifies its methodology by communicating with people in the industry to adopt the most common product specifications, terms of trade and terms of trade in the industry. And pay equal attention to normal transactions that meet the specifications and standards. SMM reserves the right to exclude any price information deemed to be unreliable or unrepresentative from its quotation judgment.

SMM publishes spot metal prices (or price indices, including the Chinese market, non-Chinese markets and global markets) on a daily basis, commonly referred to as SMM prices. SMM has formulated the corresponding methodology for the published SMM price (all of which will be published on SMM's official website www.smm.cn for inquiry). The methodology specifies the methods and procedures for the generation and release of SMM price. And strictly in accordance with the provisions of the methodology to generate and issue SMM prices.

In order to conform to the actual situation of the spot market, SMM will make the necessary amendments to the SMM price methodology and announce it on the official SMM website www.smm.cn before it is officially implemented. If you have any questions or suggestions about SMM price and its methodology, please contact SMM customer service personnel (please contact www.smm.cn on the official SMM website).

This document sets out the criteria for the quotation of crude copper processing fees for SMM, which was developed by SMM in order to establish a transparent and verifiable SMM pricing mechanism.

2. The significance of quoting crude Copper processing fee in SMM

In the copper industry chain, the crude copper processing fee reflects the profit of electrolytic copper refining to a certain extent, especially for copper smelters that purchase crude copper. The spot price of domestic crude copper is priced in the way of (copper basic unit price / processing fee) × copper metal quantity. CIF crude copper is priced according to (copper base unit price processing fee) × (copper metal quantity is less than 0.3%). In addition, crude copper processing fee is an important index to reflect the supply and demand of crude copper. For example, when the supply of raw materials (copper concentrate, scrap copper) in the market is tightened, the crude copper market is in the seller's market, so the performance of processing fees is reduced; On the contrary, the crude copper processing fee will rise. Therefore, the crude copper processing fee can also reflect the supply and demand of electrolytic copper, copper concentrate, scrap copper and so on to a certain extent. In view of this, in order to improve and deepen the structure of the copper industry chain and to have a more detailed understanding of the supply and demand of the copper market, SMM will officially issue monthly quotations for domestic crude copper processing fees and CIF imported crude copper processing fees from 31 May 2019. SMM crude copper processing fee quotation is an indicative price generated and issued by SMM according to this methodology and can be adopted by both parties as a reference basis for crude copper spot trade settlement. At that time, SMM price members can query the historical price synchronously.

3. Quotation Methodology of rough Copper processing fee in SMM

3.1 Product specifications and standards

SMM makes a range quotation for the following standard crude copper with reference to the YS/T 70-2015 crude copper industry standard:

 

Chemical composition /%

 

 

Impurity content, not greater than

Brand number

Cu is not less than

As

Sb

Bi

Pb

Ni

Zn

Cu99.40

99.4

0.1

0.03

0.01

0.1

0.1

0.05

Cu99.00

ninety-nine

0.15

0.1

0.02

0.15

0. twenty

0.1

Cu98.50

98.5

0.2

0.15

0.04

0.2

0.3

0.15

Cu97.50

97.5

0.34

0.3

0.08

0.4

-

-

This standard was put forward by the National Technical Committee for Standardization of Nonferrous Metals (SAC/TC). This standard is responsible for drafting units: Daye Nonferrous Metals Co., Ltd., Jiangxi Copper Co., Ltd., Yunnan Copper Co., Ltd., Zhongtiaoshan Caijinqu Group Co., Ltd., Jinlong Copper Co., Ltd., Zhejiang Fuye Group Co., Ltd., Yanggu Xiangguang Copper Co., Ltd., Baiyin Nonferrous Group Co., Ltd.

3.2 time of announcement

The SMM rough copper processing fee will be issued on the last working day of each month. After the announcement, SMM will not revise or adjust the price according to the market information collected after the price announcement.

3.3. Based on the actual transaction or tradable price

3.3.1 Collection of transaction prices for core market participants

The important source of SMM crude copper processing fee quotation is the transaction price collection of core market participants.

The purchase price of SMM crude copper processing fee comes from relatively fixed market participants, including copper smelter producers, buyers and traders. The purchase price is based on the fixed market participants' real trading data. SMM synthesizes the real trading situation, including the relationship between the two sides of the transaction, the specification and quality of the traded products, brand taste and payment terms, etc., in order to determine the price range.

3.3.1.1 smelting enterprises

A. Crude copper has an annual production capacity of more than 5000 tons or an annual purchase volume of more than 5000 tons. It has a standardized sales or procurement model, a smooth sales channel, a relatively stable sales or procurement quantity, and has a certain degree of influence and popularity. Legitimate and honest management, good market reputation.

B. Can objectively and truthfully feedback the actual situation of crude copper production and sales or procurement of the enterprise itself, including output, operating rate, product quality, sales price, sales quantity, sales destination, product inventory, etc., And be able to maintain good communication with SMM price analysts in this regard.

C. Have certain research and expectation on macro-economic situation, current situation of crude copper industry and crude copper market transaction, and be able to maintain good communication with SMM price analysts in this regard.

3.3.1.2 Trading enterprises

A. Engaged in spot trade of crude copper for more than two years, with an average annual purchase and sales volume of more than 5000 tons, with a standardized purchase and sale model, smooth purchase and sale channels, relatively stable purchase and sale quantity, and a certain degree of influence and popularity. Legitimate and honest management, good market reputation.

B. Can objectively and truthfully feedback the actual situation of the purchase and sale of crude copper by the enterprise itself, including product quality, purchase and sale price, purchase and sale quantity, purchase source and sales destination, product inventory, etc., And be able to maintain good communication with SMM price analysts in this regard.

C. Have certain research and expectation on macro-economic situation, current situation of crude copper industry and crude copper market transaction, and be able to maintain good communication with SMM price analysts in this regard.

3.4 quantity

The price information of crude copper processing fee can be obtained by standard sampling method by SMM, and the quantity of crude copper that can be included in the standard processing fee should be not less than 200 tons per transaction. For each transaction whose trading volume is not in this area, we will refer to the feedback of market participants, deduct the premium or discount to make it meet the standard, and abandon the bid if the transaction is an accidental act that cannot be repeated under the same conditions.

3.5 currency and units of valuation

The processing fee for domestic crude copper is in yuan per ton, and the processing fee for imported crude copper in CIF is in US dollars per ton.

3.6 terms of payment

The terms of payment reflected in the quotation are cash transactions for the month of the transaction. The proportion of advance payment for CIF import crude copper trade has generally reached 95% or more, and the proportion of domestic crude copper trade advance payment has reached 80% or more. If there is a significant deviation from this standard, we will consider whether to exclude individual samples in the light of the volume of trade. If there is a forward payment or a letter of credit payment, we will convert it according to the current interest rate to make it meet this standard.

3.7 Standardization of data

Although SMM has a standardized definition of our price, there is diversity in trading in the market. The price of each transaction is affected by many factors, including the size of the order, the brand of the goods, the time of delivery, the terms of payment, etc. SMM will take into account quotations, bids and transaction information on the market and align them with our standards.

Welcome more relevant enterprises in the industrial chain to participate in and support SMM to better serve crude copper related enterprises

If you have any doubts, you can call for advice

Kuang Zixi, Research team of Shanghai Colored net Copper

Contact information: 021 51666820, 17887943417

                                                                                               

 

19 May 2019


 

Key Words:  Crude copper  processing fees 

[SMM announcement] announcement on monthly quotation for New rough Copper processing fee

Translation 09:05:51AM May 19, 2019 Source:SMM

1. General rules of SMM Price Methodology

Shanghai Color Network (hereinafter referred to as SMM) is a completely independent third-party service organization that does not participate in any substantive transactions, but maintains close communication with the buyers or sellers of the transactions as market watchers or organizers. And provide relevant services to the market. SMM continuously develops, reviews and modifies its methodology by communicating with people in the industry to adopt the most common product specifications, terms of trade and terms of trade in the industry. And pay equal attention to normal transactions that meet the specifications and standards. SMM reserves the right to exclude any price information deemed to be unreliable or unrepresentative from its quotation judgment.

SMM publishes spot metal prices (or price indices, including the Chinese market, non-Chinese markets and global markets) on a daily basis, commonly referred to as SMM prices. SMM has formulated the corresponding methodology for the published SMM price (all of which will be published on SMM's official website www.smm.cn for inquiry). The methodology specifies the methods and procedures for the generation and release of SMM price. And strictly in accordance with the provisions of the methodology to generate and issue SMM prices.

In order to conform to the actual situation of the spot market, SMM will make the necessary amendments to the SMM price methodology and announce it on the official SMM website www.smm.cn before it is officially implemented. If you have any questions or suggestions about SMM price and its methodology, please contact SMM customer service personnel (please contact www.smm.cn on the official SMM website).

This document sets out the criteria for the quotation of crude copper processing fees for SMM, which was developed by SMM in order to establish a transparent and verifiable SMM pricing mechanism.

2. The significance of quoting crude Copper processing fee in SMM

In the copper industry chain, the crude copper processing fee reflects the profit of electrolytic copper refining to a certain extent, especially for copper smelters that purchase crude copper. The spot price of domestic crude copper is priced in the way of (copper basic unit price / processing fee) × copper metal quantity. CIF crude copper is priced according to (copper base unit price processing fee) × (copper metal quantity is less than 0.3%). In addition, crude copper processing fee is an important index to reflect the supply and demand of crude copper. For example, when the supply of raw materials (copper concentrate, scrap copper) in the market is tightened, the crude copper market is in the seller's market, so the performance of processing fees is reduced; On the contrary, the crude copper processing fee will rise. Therefore, the crude copper processing fee can also reflect the supply and demand of electrolytic copper, copper concentrate, scrap copper and so on to a certain extent. In view of this, in order to improve and deepen the structure of the copper industry chain and to have a more detailed understanding of the supply and demand of the copper market, SMM will officially issue monthly quotations for domestic crude copper processing fees and CIF imported crude copper processing fees from 31 May 2019. SMM crude copper processing fee quotation is an indicative price generated and issued by SMM according to this methodology and can be adopted by both parties as a reference basis for crude copper spot trade settlement. At that time, SMM price members can query the historical price synchronously.

3. Quotation Methodology of rough Copper processing fee in SMM

3.1 Product specifications and standards

SMM makes a range quotation for the following standard crude copper with reference to the YS/T 70-2015 crude copper industry standard:

 

Chemical composition /%

 

 

Impurity content, not greater than

Brand number

Cu is not less than

As

Sb

Bi

Pb

Ni

Zn

Cu99.40

99.4

0.1

0.03

0.01

0.1

0.1

0.05

Cu99.00

ninety-nine

0.15

0.1

0.02

0.15

0. twenty

0.1

Cu98.50

98.5

0.2

0.15

0.04

0.2

0.3

0.15

Cu97.50

97.5

0.34

0.3

0.08

0.4

-

-

This standard was put forward by the National Technical Committee for Standardization of Nonferrous Metals (SAC/TC). This standard is responsible for drafting units: Daye Nonferrous Metals Co., Ltd., Jiangxi Copper Co., Ltd., Yunnan Copper Co., Ltd., Zhongtiaoshan Caijinqu Group Co., Ltd., Jinlong Copper Co., Ltd., Zhejiang Fuye Group Co., Ltd., Yanggu Xiangguang Copper Co., Ltd., Baiyin Nonferrous Group Co., Ltd.

3.2 time of announcement

The SMM rough copper processing fee will be issued on the last working day of each month. After the announcement, SMM will not revise or adjust the price according to the market information collected after the price announcement.

3.3. Based on the actual transaction or tradable price

3.3.1 Collection of transaction prices for core market participants

The important source of SMM crude copper processing fee quotation is the transaction price collection of core market participants.

The purchase price of SMM crude copper processing fee comes from relatively fixed market participants, including copper smelter producers, buyers and traders. The purchase price is based on the fixed market participants' real trading data. SMM synthesizes the real trading situation, including the relationship between the two sides of the transaction, the specification and quality of the traded products, brand taste and payment terms, etc., in order to determine the price range.

3.3.1.1 smelting enterprises

A. Crude copper has an annual production capacity of more than 5000 tons or an annual purchase volume of more than 5000 tons. It has a standardized sales or procurement model, a smooth sales channel, a relatively stable sales or procurement quantity, and has a certain degree of influence and popularity. Legitimate and honest management, good market reputation.

B. Can objectively and truthfully feedback the actual situation of crude copper production and sales or procurement of the enterprise itself, including output, operating rate, product quality, sales price, sales quantity, sales destination, product inventory, etc., And be able to maintain good communication with SMM price analysts in this regard.

C. Have certain research and expectation on macro-economic situation, current situation of crude copper industry and crude copper market transaction, and be able to maintain good communication with SMM price analysts in this regard.

3.3.1.2 Trading enterprises

A. Engaged in spot trade of crude copper for more than two years, with an average annual purchase and sales volume of more than 5000 tons, with a standardized purchase and sale model, smooth purchase and sale channels, relatively stable purchase and sale quantity, and a certain degree of influence and popularity. Legitimate and honest management, good market reputation.

B. Can objectively and truthfully feedback the actual situation of the purchase and sale of crude copper by the enterprise itself, including product quality, purchase and sale price, purchase and sale quantity, purchase source and sales destination, product inventory, etc., And be able to maintain good communication with SMM price analysts in this regard.

C. Have certain research and expectation on macro-economic situation, current situation of crude copper industry and crude copper market transaction, and be able to maintain good communication with SMM price analysts in this regard.

3.4 quantity

The price information of crude copper processing fee can be obtained by standard sampling method by SMM, and the quantity of crude copper that can be included in the standard processing fee should be not less than 200 tons per transaction. For each transaction whose trading volume is not in this area, we will refer to the feedback of market participants, deduct the premium or discount to make it meet the standard, and abandon the bid if the transaction is an accidental act that cannot be repeated under the same conditions.

3.5 currency and units of valuation

The processing fee for domestic crude copper is in yuan per ton, and the processing fee for imported crude copper in CIF is in US dollars per ton.

3.6 terms of payment

The terms of payment reflected in the quotation are cash transactions for the month of the transaction. The proportion of advance payment for CIF import crude copper trade has generally reached 95% or more, and the proportion of domestic crude copper trade advance payment has reached 80% or more. If there is a significant deviation from this standard, we will consider whether to exclude individual samples in the light of the volume of trade. If there is a forward payment or a letter of credit payment, we will convert it according to the current interest rate to make it meet this standard.

3.7 Standardization of data

Although SMM has a standardized definition of our price, there is diversity in trading in the market. The price of each transaction is affected by many factors, including the size of the order, the brand of the goods, the time of delivery, the terms of payment, etc. SMM will take into account quotations, bids and transaction information on the market and align them with our standards.

Welcome more relevant enterprises in the industrial chain to participate in and support SMM to better serve crude copper related enterprises

If you have any doubts, you can call for advice

Kuang Zixi, Research team of Shanghai Colored net Copper

Contact information: 021 51666820, 17887943417

                                                                                               

 

19 May 2019


 

Key Words:  Crude copper  processing fees