Fastmarkets is extending its consultation on the launch of new copper material price and the potential discontinuation of its monthly assessment of the No2 copper scrap discount on a cif China basis.
During the two-month consultation period, which ended on August 2, details were pending from China’s customs on actualizing trade of copper scrap as a renewable material.
Under a new categorization policy being introduced in China, most No2 scrap could be traded as renewable copper materials starting from July 2020.
However, custom codes of the newly defined products, as well as inspection procedures, are yet to be disclosed.
As the date to activate trading of copper renewable materials is uncertain, Fastmarkets proposed to extend the consultation period until further notice.
The consultation comprises two parts:
1. Proposed launch of No2 copper material, RCu-2B (birch/cliff) discount
Name: No2 copper material, RCu-2B (birch/cliff), cif China, LME/Comex discount, US cents per lb
Quality: Minimum copper content 99% with a minimum recovery rate of 94%. Clean copper tube, belt, plate, rod, wire and other shapes. Includes burned copper wires of 1.6mm and above, attachments and surface plating. Particles of non-metallic contamination in the form of dust, sludge, crystalline salts, metal oxides and fiber should not exceed 2mm in diameter, and these particles should not exceed 0.1% of the total content, as defined by China’s State Administration for Market Regulation.
Quantity: Minimum lot size of 25 tonnes
Location: cif Chinese ports (mainly Shanghai, Guangdong, Zhejiang, Tianjin and Shandong)
Timing: Within 5 weeks
Unit: US cents per lb
Payment terms: Cash against documents, letter of credit, telegraphic transfer; other terms normalized
Publication: Monthly, last Monday of the month, 3-4pm London time
2. Potential termination of No2 copper scrap discount assessment
Because the demand-and-supply dynamics could be different for the same product, whether traded as scrap or as renewable material, Fastmarkets additionally invites feedback on whether to maintain or discontinue the existing assessment of the No2 copper scrap discount for China.
Currently, Fastmarkets makes a monthly assessment of the MB-CU-0360 copper scrap No2 copper (birch/cliff), imported into China, 94-96%, LME/Comex discount, cif China.
Fastmarkets has no financial interest in the level or direction of the assessment.
For more information, or to provide feedback on this notice, or if you would like to provide price information by becoming a data submitter to this price, please contact Julian Luk by email at: pricing@fastmarkets.com. Please add the subject heading FAO: Julian Luk, re: copper scrap cif China.
To see all Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.
