SMM strives to provide better pricing services after achieving IOSCO standards in price assessments

SUZHOU, Dec 4 (SMM) – Shanghai Metals Market will strictly adhere to the stringent pricing compliance standards and strives to provide excellent pricing services for the metals processing industry.

SMM is the first non-ferrous metal pricing platform in China that has passed the independent audit of the International Organization of Securities Commissions (IOSCO) financial index standard in 2020. This is also the first year that the China leading pricing provider has achieved the ISOCO standards.

In his speech during the 2020 Nonferrous Metals Industry Chain Annual Conference held in Suzhou, Jianhua Ye, Director of Big Data at SMM, gave an overview of the SMM copper price assessment price methodology of and its utilization that had achieved IOSCO standards.

“We conduct the price assessments based on the macroeconomy factors, correlation between products, transportation and forward market, so as to make sure that the data samples used to evaluate the spot prices are sufficient and accurate,” he said.

SMM copper price assessments can be used in the calculation of long-term orders of copper cathode, daily transaction benchmark of spot copper cathode, benchmark pricing, and the market operation indicators. SMM provides free quotes on the day.

Ye gave further explanations on the guidelines to price assessments of different copper products:

SMM Shanghai 1#copper cathode spot price assessment

SMM Shanghai 1#copper cathode spot price is calculated based on the data from thirty-three companies, and is published as a price range including 13% VAT at 11:00 CST, Monday to Friday (except for weekends and public holidays)

Assessment time of SMM Shanghai 1# copper cathode spot prices

“Trading habits change with market. Only by advancing with the times and keeping up with the pace of actual demand, can the production of spot prices become more competitive,” Ye Jianhua added.

The SMM Yangshan copper premiums assessment

The SMM Yangshan copper premiums reflect real trades or the most tradable levels of spot imported copper at the time of publication on each complete trading day. Its price assessment is undertaken at 10:00-11:30 CST each working day and published daily at 11:30 CST on the SMM Chinese and English websites, except for weekends and public holidays.

The SMM Guangdong 1#copper cathode spot price assessment

The SMM Guangdong 1#copper cathode spot price is assessed and reported based on the spot trades in Guangdong, and it can be referred to by both parties of the spot transaction for price settlement. SMM undertakes the Guangdong 1# copper cathode price assessments at 10:15-10:20 CST.

SMM Copper Concentrate Index

The calculation methods of the SMM copper concentrate index include transaction data normalisation, unusual data processing, and calculations under special circumstances, to ensure the functionality of this methodology. The SMM copper concentrate index is published on working Friday at 11:30-11:45 CST on a weekly basis, and the last trading day of the month if Friday is a public holiday.

SMM blister copper RC

The SMM blister copper RC can be referred to by both parties of blister copper spot transaction as their settlement price. The prices reflect the most tradable levels of spot blister copper, ex-works, at the time of publication on each complete trading day, including refining charges for imported blister copper (CIF) and domestic blister copper. It is published on the last trading day of the month at 14:00-14:30 CST

“SMM has become the largest company with consulting service in the nonferrous metals industry after 20 years in China.” Ye reaffirmed that SMM will always “strictly adhere to the IOSCO standards and provide excellent pricing services for the China metals processing industry”.