To better serve industry clients and align more closely with the market, SMM will officially launch the quotation of 8mm oxygen-free copper rod export processing fee (FOB) on March 7, 2025.
1. SMM 8mm Oxygen-Free Copper Rod Export Processing Fee (FOB) Price Assessment Methodology
1.1 General Principles of SMM Price Assessment Methodology
Shanghai Metals Market (hereinafter referred to as SMM) is a completely independent third-party service organization that does not participate in any actual transactions. Instead, it maintains close communication with buyers or sellers involved in transactions as a market observer or organizer and provides relevant services to the market. This document specifies the standards for the formulation of SMM 8mm oxygen-free copper rod export processing fee (FOB) price assessments. The purpose of establishing these standards is to create a transparent and verifiable SMM price assessment mechanism.
2. Formation of SMM 8mm Oxygen-Free Copper Rod Export Processing Fee (FOB) Price Assessments
2.1 Significance of the Price Assessment
With the cancellation of export tax rebates for copper semis under Ordinary Trade, the processing fee center for copper cathode rods (T1) has risen due to changes in trade modes. However, actual export profits have been compressed, and the domestic export advantage of T1 copper rods has declined to some extent due to the forced increase in processing fees. In contrast, oxygen-free copper rods (TU1, TU2) have a relatively lighter degree of capacity surplus, and their processing fees still hold an advantage. As domestic oxygen-free rod capacity continues to increase while the overseas market remains unsaturated, the future expansion of the oxygen-free copper rod export market is expected to further absorb domestic capacity, enhance the international competitiveness of China's copper semis industry, and improve corporate profitability. The transparency and marketization of processing fee prices help enterprises adjust production plans and sales strategies in response to market changes, thereby reducing operational risks. SMM is expected to introduce an 8mm oxygen-free copper rod export processing fee (FOB). Based on surveys, the FOB trade mode is widely referenced and applied by oxygen-free copper rod entities. The processing fee price will now be collected and publicly quoted according to the methodology, providing a reference for upstream and downstream enterprises, supporting decision-making, and helping companies reduce transaction costs.
2.2 SMM 8mm Oxygen-Free Copper Rod Export Processing Fee (FOB) Price Assessment Methodology
2.2.1 Product Specifications and Standards
The newly introduced 8mm oxygen-free copper rod export processing fee (FOB) applies to products with specifications of 8mm copper cathode rods (TU1, TU2). The product standard requires an oxygen content of less than 20ppm, and compliance with relevant product regulations of the export destination and Chinese customs is mandatory.
2.2.2 Price Terms
The price is the FOB self pick-up price, denominated in US dollars per metric ton.
2.2.3 Payment Method
Bank telegraphic transfer.
2.2.4 Quotation Format and Quotation Time
The quoted processing fee is presented as a range, indicating the minimum and maximum prices. For example, the export processing fee (FOB) for 8mm oxygen-free copper rod is quoted as a range of $290-320/mt, with an average price of $305/mt. The newly added export processing fee (FOB) for 8mm oxygen-free copper rod is quoted on a weekly basis. Every Friday at 11:50 AM, SMM will publish the price on the website front page.
2.2.5 Price Collection Method
SMM will collect price information from the oxygen-free copper rod export market through price collection liaison officers, based on the Price Collection Confirmation Agreement. Price analysts will use methods such as phone calls, QQ, WeChat, fax, and email to regularly collect price information, including transaction prices and the most likely expected pending transaction prices of the enterprises. All instant messaging content, email communications, and any face-to-face communication records will be archived; details of phone communications will be recorded and entered into the database. SMM analysts must report to their supervisors any communication content from market participants that involves coercion or threats, or any attempts to influence assessments through inducement offers, in compliance with the "Compliance Policy." Once the price is published, SMM will not make any revisions or adjustments on the same day.
2.2.6 Data Standardization
Although SMM has defined standardized prices, market transactions exhibit diversity. Each transaction price is influenced by numerous factors, including order size, product brand, delivery time, and payment terms. SMM will comprehensively consider market quotations, bids, and transaction information, aligning them with our standards.
We welcome more related enterprises in the industry chain to participate and support SMM in better serving copper industry chain-related enterprises.
For any inquiries, please contact:
SMM Copper Research Team
Tongxu Zhang
Contact Information: 021-20707929, 13295353556
