SMM November 12: at the 2021 China Nonferrous Metals Industry Annual meeting and long order Carnival jointly held by Shanghai Futures Exchange and SMM, SMM Copper Senior analyst Zhang Xiuhao delivered a report on the operation of electrolytic copper quotation methodology. Zhang Xiuhao said that the spot quotation for SMM copper electrolysis is an indicative price that SMM generates and publishes in accordance with this methodology and can be adopted by both parties as a reference basis for spot settlement of copper electrolysis. This price reflects the spot price range in which the spot price of SMM copper electrolytic copper is most likely to be closed before the release time of the spot quotation for electrolytic copper on each full working day.
Spot price advantage of Shanghai non-ferrous (SMM) electrolytic copper
SMM copper prices are tracked by a team of 8 full-time analysts, price generation is based on the study of the whole industry chain, and price tracking is comprehensive and timely. The price of the industrial chain covered by the website area (https://www.smm.cn) includes copper concentrate, crude copper, scrap copper, domestic electrolytic copper, imported electrolytic copper, copper rod wire, copper alloy, copper compounds, copper powder, etc., and the number of price points reaches 80.
The price of SMM copper electrolysis comes from the spot market of copper electrolysis and has been accumulated for nearly 20 years. At the same time, the accumulation of industry chain data of SMM copper research team ensures the fairness and objectivity of the price of electrolytic copper in SMM copper.
SMM continuously optimizes the quotation methodology and introduces reference to IOSCO international pricing standards and rules, so that there are laws to follow and evidence to follow in daily price research.
After more than 10 years of market observation and tracking, SMM Copper Electrolytic Copper has accumulated a strong credit system and a large customer base, which has been used as a settlement benchmark and reference by copper smelters, copper factories, domestic and foreign traders, end customers, and institutions concerned about the copper market.
General principles of SMM Price Methodology
Guiding ideology of (SMM) price evaluation methodology of SMM: spot transaction price evaluation of China's domestic spot market; price methodology is the basis and basis of SMM price generation; SMM makes every effort to check all transaction information collected; completely independent third party organizations, market watchers who do not participate in the transaction; price evaluation is based on information collected from market participants. Reflect confirmed transactions and special transactions that have been standardized.
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Generation of spot quotation for SMM Copper Electrolytic Copper
Definition of price: SMM copper spot quotation is an indicative price produced and issued by SMM according to this methodology and can be adopted by both parties as the reference basis for spot settlement of copper electrolysis. This price reflects the spot price range in which the spot price of SMM copper electrolytic copper is most likely to be closed before the release time of the spot quotation for electrolytic copper on each full working day. The price is based on the spot buying and selling price situation in Shanghai on that day, deducting transportation fees, taxes, capital occupation costs and other related fees. Other regions can adjust the actual settlement price at the time of transaction according to the market correlation between different regions on the basis of this price.
Price generation method: SMM obtains spot price information of copper electrolysis through standard acquisition. It includes the directional transaction price provided by the bid-adopting unit, the discount on the spot of the existing transaction, the discount on the spot of the directed transaction, and so on.
Price setting standard and definition
SMM's division of different brands
Price setting standards and definitions:
Mode of delivery: same day delivery, buyer Shanghai, Wuxi warehouse self-mentioned; mode of transport is rail transport, motor transport, sea transport.
Release time: before 11:00 every working day (except statutory holidays and weekends).
Form of expression: presented in the form of interval, including tax price (including 13% VAT).
Reference transaction quantity: each transaction is more than 200 tons.
Place of delivery: China Wusong Shanghai and Hong Kong Logistics warehousing; China Storage Dachang Tim Horse Logistics State Storage 837.
Terms of payment: cash by bank, arriving on the same day.
Unit of valuation: RMB / ton.
