After a consultation period, Fastmarkets has decided to launch a monthly assessment of the discount for No1 copper material, candy/berry, on a cif China basis.
Over the consultation period from May 5 to June 7, buying interest in No1 copper material remained strong because the market believes the product to be more compliant with the new Chinese definition of renewable material.
Chinese importers’ spot-market appetite for top-grade copper scrap has been growing over the recent copper price rally, which has also driven cathode consumers to search for cheaper alternatives.
Nonetheless, market participants said there was the potential for a decline in recyclable material demand because the Chinese government has implemented a range of measures to clamp down on commodity prices.
Since the country’s reclassification policy was launched in November 2020, No1 copper material – typically of higher copper content and clean surfaces – can easily pass customs inspections, but several No2 cargoes have been rejected over the past few months for failing to meet the impurities standard.
The new price will supplement our coverage of the existing price, namely No2 copper material, RCu-2B (birch/cliff), cif China, LME/Comex discount, US cents per lb.
The specifications for the price assessment are as follows:
Assessment: No1 copper material, RCu-2A,1B (candy/berry), cif China, LME/Comex discount, US cents per lb. Quality: Definitions of RCu-2A and RCu-1B as stipulated in China’s GB per tonne 38471-2019 document. Both RCu-2A and RCu-1B require a metal recycling rate of not less than 97%. Quantity: 25 tonnes Location: cif Chinese ports (Shanghai, Guangdong, Zhejiang, Tianjin, Shandong) Unit: US cents per lb Payment terms: Cash against document, letter of credit, telegraphic transfer; other terms normalized. Publication: Monthly, last Monday of each month, 2-3pm London time.
To provide feedback on this proposal, or if you would like to provide price information by becoming a data submitter, please contact Julian Luk by email at firstname.lastname@example.org.
To provide feedback on this price or if you would like to provide price information by becoming a data submitter to this price, please contact Julian Luk by email at: email@example.com. Please add the subject heading ‘FAO: Julian Luk, re: No1 copper material, candy/berry, cif China’
To see all Fastmarkets’ pricing methodology and specification documents, go to: www.metalbulletin.com/prices/pricing-methodology.