PRICING NOTICE: Metal Bulletin launches RC assessments to track blister copper imported to China

Metal Bulletin has launched two assessments to track spot and annual refining charges (RC) for blister copper imported to China following a month-long consultation.

Blister copper, an intermediate copper product used by smelters for refined copper production, is known as one of the first options for scrap replacement.

Import volumes of the increasingly popular blister copper, together with anodes, soared by 53% from 2015 in the first 11 months last year to 731,339 tonnes.
Against this backdrop, Metal Bulletin launched the two prices to track RCs for the product on February 28, a day before China’s new policy to restrict scrap imports comes into effect.

The policy change, which could remove up to 500,000 tonnes of scrap from the Chinese market, is expected to further boost import volumes of blister copper.

Following a one-month consultation, Metal Bulletin has learned that increased transparency will assist market participants in the blister copper business stream. Market feedback suggests there is appetite for a Metal Bulletin assessed regular tracker of blister copper RCs.

The two price assessments are based on spot market and long-term contract data collected from producers, buyers and traders relating to blister copper sold into China. Active participants in the blister copper market are welcome to contribute to the price discovery process.

The specifications for the blister copper price assessments have been chosen to reflect the most commonly traded volumes in China.

Metal Bulletin’s price assessment methodology is applied in respect of both prices whereby greater weighting is given to actual concluded transaction data. Bids, offers and assessments are also taken into account.

The specification, delivery terms and publication timing will be as follows:

Price: Blister copper 98-99% spot RC cif China
Type: Assessed single number and range
Chemical specification: Blister copper of 98-99% copper content, with varying payables
Basis: Blister copper 98-99% spot RC cif China
Currency: USD per tonne
Unit: Tonne
Delivery window: Within 2 months
Publication: Monthly, last day of the month between 3pm and 4pm London time

Price: Blister copper 98-99% annual benchmark RC cif China
Type: Assessed single number and range
Chemical specification: Blister copper of 98-99% copper content, with varying payables
Basis: Blister copper 98-99% annual benchmark RC cif China
Currency: USD per tonne
Unit: Tonne
Publication: Annually, January or February of the year

As there is a broad range of blister copper being traded on the market, Metal Bulletin will continue to monitor the data collected, including that which does not fall into the specifications above.

If you have any queries or feedback concerning the details of the price assessments or would like to contribute to the price discovery process, please contact Julian Luk or Archie Hunter at: pricing@metalbulletin.com. Please add the subject heading FAO: Julian Luk/Archie Hunter, re: Blister copper 98-99% spot RC cif China, blister copper 98-99% annual benchmark RC cif China.

To see all Metal Bulletin’s pricing methodology and specification documents go to: www.metalbulletin.com/prices/pricing-methodology

Questions relating to Metal Bulletin’s pricing methodology and policy should be sent to Metal Bulletin’s global base metals editor, Perrine Faye, at perrine.faye@metalbulletin.com.

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