[SMM Announcement] Announcement of the publication of SMM Copper scrap ingot, CIF China price

To better serve industrial clients and align more closely with the market, SMM has introduced “Copper scrap ingot, CIF China”, which will be officially launched on the SMM website (smm.cn) on June 27, 2025.

SMM Copper scrap ingot, CIF China Price Assessment Methodology

1.1 General Principles of SMM Price Assessment Methodology SMM (hereinafter referred to as SMM) is a completely independent third-party service provider that does not participate in any actual transactions. Instead, it maintains close communication with buyers or sellers in transactions as a market observer or organizer and provides relevant services to the market. This document outlines the criteria for formulating the SMM Copper scrap ingot, CIF China price. The purpose of SMM in establishing these criteria is to create a transparent and verifiable SMM price-setting mechanism.

2. Formation of SMM Copper scrap ingot, CIF China Price

2.1 Significance of Quotation

In the copper industry chain, copper scrap ingots, as raw materials, can flow directly to the processing end or the smelting end. Particularly under the current backdrop of tight copper concentrate raw material supply, domestic copper smelters actively seeking raw material supply, and frequent domestic copper scrap policies, the import volume of copper scrap ingots has increased significantly in recent years. Therefore, the coefficient of imported copper scrap ingots can, to a certain extent, reflect the supply and demand situation of raw materials at the smelting and processing ends. In view of this, to improve and deepen the structure of the copper industry chain and gain a more detailed understanding of the supply and demand situation in the copper market, SMM will officially release weekly quotations for Copper scrap ingot, CIF China starting from June 27, 2025. The SMM Copper scrap ingot, CIF China price is an indicative price generated and released by SMM based on this methodology, which can be adopted by both trading parties as a reference for spot trade settlement of imported copper scrap ingots. At that time, SMM price members can simultaneously query historical prices.

2.2 SMM Copper scrap ingot, CIF China Price Assessment Methodology

2.2.1 Product Standards

Copper scrap as raw material, CIF China, timing within 5 weeks, with a copper grade of ≥97.5%.

2.2.2 Price Terms

The price is expressed as a coefficient of the LME (0-3) contract, CIF China price excluding VAT, in percentage terms.

2.2.3 Payment Terms

The payment terms reflected in the quotation are for cash transactions in the week of the trade. If there are forward payments or letter of credit payments, we will discount them according to the prevailing interest rates to align with this standard.

2.2.4 Price Format and Quotation Time

The quoted price is presented as a coefficient range, with a minimum and maximum price, and the minimum variation unit is 0.1%. For example: Copper scrap ingot, CIF China range is 96.5% to 98.5%, with an average price of 97.5%. The SMM Copper scrap ingot, CIF China price will be released before 12:00 PM on the last working day of each week (excluding Chinese public holidays and weekends). If there are fewer than three working days in the week, the weekly processing fee will not be released. After the release, SMM will not revise or adjust the price based on market information collected after the price release.

2.2.5 Collection of Transaction Prices from Core Market Participants

The important source for the SMM Copper scrap ingot, CIF China quotation is the collection of transaction prices from core market participants.

The price collection for SMM Copper scrap ingot, CIF China is sourced from relatively fixed market participants, including copper smelting producers, buyers, and traders. The price collection is based on data from real transactions of fixed market participants. SMM synthesizes the actual transaction situations, including the relationship between the trading parties, the specifications, quality, grade, and payment terms of the traded products, to determine the price range.

2.2.5.1 Smelters

a. The annual production capacity of copper scrap ingots is over 3,000 mt, or the annual procurement volume is over 3,000 mt. They have standardized sales or procurement models, smooth sales channels, relatively stable sales or procurement volumes, certain influence and reputation, operate legally and honestly, and have a good market reputation.

b. They can objectively and truthfully provide feedback on the actual production, sales, or procurement situations of their own copper scrap ingots, including production, operating rate, product quality, selling price, sales volume, sales destinations, product inventory, etc., and can maintain good communication with SMM price analysts on this.

c. They have certain research, judgment, and expectations on the macroeconomic situation, the current status of the copper scrap ingot industry, and the market transactions of copper scrap ingots, and can maintain good communication with SMM price analysts on this.

2.2.5.2 Traders

a. Engage in spot trade of imported copper scrap ingots for more than two years, with an average annual purchase and sales volume exceeding 3,000 mt (unilateral), standardized purchase and sales models, smooth purchase and sales channels, relatively stable purchase and sales volumes, a certain level of influence and reputation, operating legally and in good faith, and enjoying a good market reputation.

b. Be able to objectively and truthfully provide feedback on the actual situation of the enterprise's anode plate procurement and sales, including product quality, purchase and sales prices, purchase and sales volumes, procurement sources and sales destinations, and product inventory, and maintain good communication with SMM price analysts in this regard.

c. Have a certain level of research, judgment, and expectations regarding the macroeconomic situation, the current state of the copper scrap ingot industry, and market transactions in the copper scrap ingot sector, and maintain good communication with SMM price analysts in this regard.

2.2.6 Quantity

SMM obtains Copper scrap ingot, CIF China price information through standard price collection methods. The transaction volume of copper scrap ingots that can be included in the standard price collection should be no less than 100 mt per transaction. For transactions with volumes outside this range, we will refer to feedback from market participants and deduct premiums or discounts to align them with the standard. If a transaction is an occasional and non-repeatable behavior under the same conditions, it will be excluded from the price collection.

2.2.7 Method of Price Collection

SMM will, in accordance with the price collection confirmation agreement, regularly collect price information from price collection contacts in the copper foil industry through phone calls, QQ, WeChat, fax, and email by price analysts. This price information includes transaction prices, the most likely pending transaction prices expected by the enterprise, etc. All instant messaging content, email communication content, and records of any face-to-face communications will be archived; details of phone communications will be recorded and entered into the database. SMM analysts must comply with the Compliance Policy when reporting to their supervisors any communication content from market participants that is coerced or threatened, or any induced offers that attempt to influence the assessment. Once the price is published, SMM will not make any corrections or adjustments on the same day.

2.2.8 Standardization of Data

Although SMM has standardized the definition of our prices, there is diversity in market transactions. The price of each transaction is influenced by numerous factors, including order size, brand of goods, delivery time, payment terms, etc. SMM will comprehensively consider the quoted prices, bids, and transaction information in the market and align them with our standards.

2.2.9 Methodology Changes

All markets are subject to change, and SMM has the responsibility to ensure that the methodologies for market reports evolve in tandem with the market. Therefore, SMM will conduct regular internal reviews of the appropriateness of methodologies based on industry feedback. For all potential substantive but non-urgent modifications, SMM will follow a formal external consultation process. Major changes will then be announced, with a minimum notice period of 28 days, inviting industry participants to comment, unless there are special circumstances, particularly force majeure (natural disasters, wars, exchange bankruptcies, etc.) that necessitate a shorter notice period. SMM undertakes to carefully review all comments on proposed methodology changes, but in certain circumstances, it may have to make changes to the methodology against the wishes of some market participants. Additionally, SMM has a formal methodology consultation process. SMM commits to conducting a formal consultation on the methodology every three years. The date of the last consultation and the deadline by which SMM commits to conducting the next consultation are located at the top of the methodology document. We welcome more relevant enterprises in the industry chain to participate and support SMM in better serving enterprises related to the copper scrap ingot industry chain.

For any inquiries, please contact

Shanyu Jiang from the SMM Copper Research Team.

Contact Information: 021-20707916, +86 15615750662