PRICING NOTICE: Proposal to discontinue single numbers for base metals premiums

Metal Bulletin proposes to discontinue the publication of single numbers for its base metals premiums and instead continue to publish low-high premium assessments.

The proposal to stop assessing single base metals premiums follows feedback from market participants and exchanges that these numbers are not widely used by the industry, who prefer to use the low-high premium assessments, in particular the midpoint of the ranges.

Currently, Metal Bulletin publishes 11 single number base metals premiums as listed below. For each of these prices, Metal Bulletin also publishes low-high premium assessments, which could be used instead of the single numbers should these be discontinued as proposed.

  • Aluminium P1020A premium, cif Shanghai, spot, $/tonne
  • Aluminium P1020A premium, cif MKP (Main Korean Ports), duty-free, spot, $/tonne
  • Aluminium P1020A premium, in-warehouse Rotterdam, duty-unpaid, spot, $/tonne 
  • Copper premium, Grade A cathode, in-warehouse Shanghai, spot, $/tonne 
  • Copper premium, Grade A cathode, cif Shanghai, spot, $/tonne 
  • Copper premium, Grade A cathode, cif South Korea, spot, $/tonne 
  • Copper premium, Grade A cathode, cif Leghorn (Italy), spot, $/tonne 
  • Nickel premium, 99.80% purity full plate, in-warehouse Shanghai, spot, $/tonne 
  • Nickel premium, 99.80% purity full plate, cif Shanghai, spot, $/tonne 
  • Zinc premium, 99.995% purity ingot, in-warehouse Shanghai, spot, $/tonne 
  • Zinc premium, 99.995% purity ingot, in-warehouse Singapore, spot, $/tonne 

For any data that currently uses a single number in its calculation process, Metal Bulletin would instead use the midpoint of the low-high range. This is the case for monthly averages and for the SHFE vs LME base metals arbitrage.

The consultation period for the discontinuation of these 11 premiums will end two months from the date of this pricing notice, on Friday August 24. Depending on feedback, changes will take place from Tuesday August 28.

To provide feedback on this consultation or if you would like to provide price information by becoming a data submitter to the low-high premium ranges, please contact Perrine Faye by email at: pricing@metalbulletin.com. Please add the subject heading “FAO: Perrine Faye, re: discontinuation of single numbers.”

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

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