Because South China and North China are both important places of production and consumption of copper rods in China, the total consumption of copper rods in the two places accounts for more than 35% of the total amount of the whole country, which has a great influence on the market. In view of this, SMM in order to serve the copper industry chain related enterprises, to provide them with a true reflection of the spot market prices, and continue to improve and deepen the copper industry chain research, will be officially issued from April 10, 2020 "SMM South China 8mm copper rod processing fee (weekly)" and "SMM East China 8mm copper rod processing fee (weekly) spot quotation.
I. General principles of SMM Price Methodology
Shanghai Nonferrous Network (hereinafter referred to as SMM) is a completely independent third-party service organization, does not participate in any substantive transactions, but as a market observer or organizer to maintain close communication with the buyer or seller of the transaction, and provide relevant services for the market. Through communication with the industry, SMM continues to develop, review and revise its methodology, adopting the most common product specifications, terms of trade and terms of trade in the industry, and paying equal attention to normal transactions that meet specifications and standards. SMM reserves the right to exclude any price information deemed to be less reliable or unrepresentative from its quotation judgment. SMM publishes spot metal prices (or price indices, including China, non-China and global markets) on a daily basis, commonly referred to as SMM prices. SMM has formulated the corresponding methodology for the published SMM prices (all of which will be published on the official website of SMM www.smm.cn for inquiry). The methodology specifies the methods and procedures for the generation and release of SMM prices, and produces and publishes SMM prices in strict accordance with the provisions of the methodology. In order to meet the actual situation of the spot market, SMM will make the necessary revisions to the SMM pricing methodology and announce it on the official SMM website before the official implementation date. If you have any questions or suggestions about SMM pricing and its methodology, please contact SMM customer service personnel (please contact www.smm.cn on the official SMM website). This document sets out the standard for the setting of SMM Yingtan copper prices, and SMM establishes this standard for the purpose of establishing a transparent and verifiable SMM pricing mechanism.
II. Generation of quotation for processing fees of Copper rods in South and North China in SMM-
2.1 significance of SMM- South China and North China Copper Rod processing fee quotation
Because South China and North China are both important places of production and consumption of copper rods in China, the total consumption of copper rods in the two places accounts for more than 35% of the total amount of the country, which has a considerable influence on the market. In view of this, in order to serve the relevant enterprises of the copper industry chain, provide them with prices that truly reflect the spot market situation, and constantly improve and deepen the research on the copper industry chain, SMM will officially issue the weekly spot quotation for the processing of copper rods in South and East China from April 10, 2020.
2.2 definition of price
SMM spot quotation for 8mm copper rod processing fees in South and East China is an indicative price generated and issued by SMM in accordance with this methodology and can be adopted by both parties as a reference for the settlement of spot copper rod trade. The price reflects the spot trading price range that is most likely to close every Friday. At that time, SMM price members can query the historical price synchronously.
Now add North China, South China copper rod weekly quotation [new 4 quotation points, power industry pole (South China), enamelled wire pole (South China) and power industry pole (North China), enamelled wire rod (North China)]. And the original power industry pole (East China) and enamelled wire rod (East China) monthly to weekly quotation.
Define the following figure as an example:
Among them, the pole of electric power industry is 500-700 yuan / ton, 500 yuan / ton refers to the mainstream transaction price of domestic equipment processing fee, 700 yuan / ton refers to the mainstream transaction price of imported equipment processing fee.
Enamelled wire rod 700-900 / ton; 700 yuan / ton refers to the mainstream transaction price of general enamelled wire rod processing fee, 900 yuan / ton refers to the mainstream transaction price of high-end enamelled wire rod processing fee.
2.3 method of generating price
SMM obtains the quotation of SMM South China and North China 8mm copper rod processing fee by means of standard. Every Friday, the designated price collector makes an inquiry to the bid acquisition unit, and the inquiry information is entered into the SMM internal system. On the basis of the spot transaction price collected from the main body of the South China and North China markets, the market transaction price jointly confirmed by both buyers and sellers must meet the requirements of fairness, tradability, replicability and so on. The standard collection price includes the actual spot transaction price provided by the local bid acquisition enterprise.
2.4 method of standard collection
Based on the bid confirmation agreement, SMM will regularly consult spot copper rod manufacturers or traders in South and North China by telephone, QQ, WeChat, fax and email (every Friday) for price information, including the price already traded on the same day, the most likely price to be concluded by the enterprise, and so on. All instant messaging content, email communication content and any records of face-to-face communication will be archived. Details of the telephone communication will be recorded and recorded in the database.
SMM analysts are subject to the Compliance regime when reporting to their executives any forced or threatened communication among market participants, or any induced offer that attempts to influence the assessment.
At 11: 00-11: 30 every five trading days, the SMM South China and North China 8mm copper rod processing fee ranges are posted on the official SMM website. After the price is released, SMM will not revise or adjust it on the same day.
2.5 Product Standard
The product standard must conform to the national standard GB/T 3952-200X standard
2.5.1. The chemical composition of copper raw materials used in the production of copper wire billets shall conform to the following table:
2.5.2 the resistivity of copper wire billets shall conform to the following table (which is the minimum value of the international standard for IEC28- copper resistance)
2.6 unit of valuation
RMB / ton
2.7 forms of expression
Presented in interval form, including tax value (including 13% VAT)
2.8 release time
Before 11:30 on Friday working days (except statutory holidays and weekends)
2.9 quoting process
SMM carries out the quotation of SMM South China and North China 8mm copper rod processing fees every Friday from 9: 30 a.m. to 11: 00 a.m., as follows:
2.10 change in methodology
All markets are changing, and SMM has a responsibility to ensure that the methodology for market reporting changes synchronously with the market. As a result, SMM conducts regular internal reviews of the appropriateness of the methodology based on industry feedback. SMM will follow the formal external consultation process for all potential changes that are substantive and not urgent. It then announces major changes and gives a notice period of at least 28 days, inviting industry members to comment, unless special circumstances, especially force majeure (natural disasters, war, exchange bankruptcy, etc.) cause the notice period to be shortened. SMM promises to scrutinize all comments on the proposed methodological changes, but in some cases it may have to change the methodology against the wishes of some market participants. In addition, SMM has a formal methodological consultation process. SMM promised to hold a formal consultation on the methodology every three years. The date of the last consultation and the deadline for SMM's commitment to hold the next consultation are at the top of the methodology document.
Welcome more related enterprises in the industry chain to participate and support SMM to better serve copper related enterprises
If in doubt, please call for advice
Contact information of long Huachen, copper research team of Shanghai Nonferrous Network: 075785511521
Chen Ming, copper research team of Shanghai Nonferrous Network, contact information: 021-51595816