PRICING NOTICE: Proposal to launch assessment of No1 copper material discount

Fastmarkets is proposing to launch a monthly assessment of the discount for No1 copper material, candy/berry, on a cif China basis.

The spot-market appetite among Chinese importers for top-grade copper scrap has been growing through the recent copper price rally, which has driven cathode consumers to search for cheaper alternatives.

Buying interest in No1 copper material also rose because it was seen as being more compliant with the new Chinese definition of renewable material.

Since the country’s reclassification policy was launched last November, No1 copper material, typically of higher copper content and clean surfaces, could easily pass customs inspection, but several No2 cargoes have been rejected over the past few months for failing to meet the impurities standard.

Over the past few months, more market participants have taken a bigger inflow of No1 material compared with No2, which previously comprised the bulk of copper scrap imports into China.

Candy is defined as No1 heavy copper solids and tubing, while berry is defined as No1 copper wire, according to the Institute of Scrap Recycling Industries (ISRI). Both are common No1 products sold to China.

Under the Chinese categorization, candy is reclassified as No1 copper material, RCu-2A, while berry is reclassified as No1 copper wire, RCu-1B.

To reflect these market changes in a timely manner, Fastmarkets proposes to launch a monthly discount assessment for No1 copper material, RCu-2A,1B (candy/berry), cif China, LME/Comex discount, US cents per lb.

This 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 proposed 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.

The consultation period for this proposal will start on May 5 and end on June 7. Subject to market feedback, the price will launch in late June.

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 pricing@fastmarkets.com. Please add the subject heading ‘FAO: Julian Luk re: No1 copper material cif China.’

To see all Fastmarkets’ pricing methodology and specification documents, go to: https://www.metalbulletin.com/prices/pricing-methodology.

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed