Proposal to increase the frequency of two copper concentrates index coefficients

The proposal aims to better reflect the more frequent and volatile changes to the two copper coefficients under extreme market conditions.

Fastmarkets has been publishing the coefficients since April 2019 and both derive from Fastmarkets’ copper concentrates TC/RC index, cif Asia Pacific, which prices the mid-point of the market.

The proposed index coefficient specifications are as follows (changes in italics):

MB-CU-0422 – Copper concentrates counterparty spread, $/tonne
Quality: Cu (%) base 26, max 37, min 18; Au (g/dmt) base 1.1, max30; Ag (g/dmt) base 75, max 350; S (%) Base 32, max 38, min 20; Fe (%) base 28, max 35, min 15; Pb (%) base 0.07, max 4; Zn (%) base 1, max 4; As (%) base 0.17 max 2; Sb (%) base 0.018, max 0.2; Hg (ppm) base 2.5, max 10; Bi (ppm) base 145, max 2,000
Quantity: Minimum 5,000 dry metric tonnes
Location: CIF Asia Pacific
Unit: USD/tonne
Publication:Fortnightly, Friday before 4pm UK time.
Notes: The counterparty spread price will measure, in $/tonne, the net gap between the average smelters purchases price and the traders purchase price for copper concentrate TCs.

MB-CU-0423 – Copper concentrates copper VIU, $/tonne
Quality: Cu (%) base 26, max 37, min 18; Au (g/dmt) base 1.1, max30; Ag (g/dmt) base 75, max 350; S (%) Base 32, max 38, min 20; Fe (%) base 28, max 35, min 15; Pb (%) base 0.07, max 4; Zn (%) base 1, max 4; As (%) base 0.17 max 2; Sb (%) base 0.018, max 0.2; Hg (ppm) base 2.5, max 10; Bi (ppm) base 145, max 2,000
Quantity: Minimum 5,000 dry metric tonnes
Location: cif Asia Pacific
Unit: USD/tonne
Publication:Fortnightly, Friday before 4pm UK time.
Notes: The copper VIU price measures the value-in-use in $/tonne of one extra percentage point of copper in a parcel of concentrates.

The consultation period for this proposed amendment starts from Friday December 20 and will end on January 22. The amendment will then take place, subject to market feedback, on January 24.

These prices are part of the Fastmarkets base metals package.

To provide feedback on these prices or if you would like to provide price information by becoming a data submitter to these prices, please contact Sally Zhang and/or Albert MacKenzie by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Sally Zhang/Albert MacKenzie, re: the frequency of two copper concentrates index coefficients.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.