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Material and market specification Grade A copper cathode that meets London Metal Exchange specifications: BS EN 1978:1998 (Cu-CATH-1) Free market price denominated in US dollars In warehouse price, duty unpaid Minimum 25 tonne transactions Spot business only, immediate shipment Price reporting – daily at 14.00 London time Each premium is location specific
Pricing methodology The price collection methodology is based on the tried and proven assessment method that Metal Bulletin uses across the majority of its extensive price series in the global metals and mining industries.
Price collection Metal Bulletin uses its extensive network of contacts and legal agreements to collect transaction information. The full details of the transaction are requested, including price, material specifications, transaction size, delivery point and terms, payment details and other factors which allow the underlying value of the transaction to assessed. For those deals with significantly higher or lower price than the group, proof of price can be requested. If this is refused, the price is excluded from the assessment. Where possible Metal Bulletin will seek to check the details with the other side of the transaction.
Metal Bulletin aims to speak to as many participants as possible, from both sides of the market, in order to maximise accuracy and balance. In any case, all participants who are conducting business in this market have the option to contribute, and the pricing is not conducted by a closed panel. However, Metal Bulletin reserves the right to ignore data that it does not feel is correct, or where it feels that an attempt to influence the market has taken place.
In addition, Metal Bulletin speaks to a wide range of market makers and brokers to collect indicative prices on a daily basis.
Data is collected primarily by phone, but also by email and by direct submission. The details of the contact are recorded for reference and internal audit purposes.
All premiums, with the exception of Shanghai, are assessed on an in-warehouse basis. The Shanghai premium is cif Shanghai.
Price Calculation The calculation is based on actual transactions that have taken place in the specific local market, combined with the indicative prices from market makers and brokers on a discounted basis.
The premium for each location is a tonnage weighted calculation of transactions, combined with the indicative prices of the market makers. The tonnage weighting of the indicative prices is set at the equivalent of 10 lots (250 tonnes).
There is no maximum or minimum weighting of indicative prices in the total calculation of the daily premium, as the relative weighting will reflect the level of physical activity on any given day. The use of both data collection routes allows continuity of pricing and accurate and up-to-date market quotes when physical activity falls.
Outliers Metal Bulletin uses its judgement and long experience to remove from the data set any prices or quotes which it believes to be incorrect or unrepresentative of the market.
Premium Locations Copper cathode premiums are published for the following locations 1. Europe a. Germany (Hamburg) b. Netherlands (Rotterdam) c. Italy (Leghorn) 2. Asia a. Singapore b. South Korea (Busan) c. Malaysia (Johor) d. Shanghai 3. North America a. New Orleans b. Baltimore c. Chicago
Publication Metal Bulletin publishes the premiums daily, at 14.00 London time. The premiums will be published every working day with the exception of UK bank holidays. In the event of unexpected closure of the UK office, the premiums will be published from Metal Bulletin’s New York or Singapore office as appropriate.
Independence and integrity Metal Bulletin is the established leader in metals and minerals reporting, is a member of the Euromoney Institutional Investor family, and is completely independent of the market. Metal Bulletin has no financial interest in the direction or magnitude of any price movement.
Methodology Metal Bulletin reserves the right to change the methodology in response to changed market conditions.