Proposal to launch three new Chinese copper scrap grades, increase frequency

The proposal to increase the publication frequency from monthly to weekly comes amid increased volatility of copper on the London Metal Exchange, while copper scrap discounts have been shifting on a more regular basis.

This more frequent assessment will enable Fastmarkets to reflect market dynamics in a timelier manner, as well as capture more spot liquidity.

As Chinese imports have shifted away from direct US imports in the past year, Fastmarkets is also proposing to align the publication schedule with the LME calendar rather than the COMEX calendar. The new schedule will also come in line with our existing CIF Shanghai copper cathode assessments and CIF Asia Pacific copper concentrates treatment and refining charges (TC/RC) indices.

In addition, as manufacturing focus shifts toward semiconductors, electric vehicles (EVs) and renewable energy, Chinese importers have been moving into larger-scale consolidated production, with higher scrap purity requirements and more precision needed in their calibration of their primary-secondary feedstock ratio.

As such, Fastmarkets is proposing to add a price assessment for millberry — also known as bare bright copper wire scrap — and two new copper nodules grades: clove and cobra.

The new specifications will reflect China’s updated national standards document GB/T 38471-2023, rather than the obsolete GB/T 38471-2019 standard.

The proposed amendments, noted in italics, are as follows:

MB-CU-0512 No1 copper wire/material, RCu-2A,1B (candy/berry), cif China, LME discount, US cents per lb
Quality: Definitions of RCu-2A and RCu-1B as stipulated in China’s GB/T 38471-2023 document. RCu-2A (#1 copper materials, ISRI code candy) requires a minimum copper content of 99.2%, less than 0.5% non-metallic inclusions, and less than 0.2% hazardous content. RCu-1B (#1 copper wire, ISRI code berry) requires a minimum copper content of 99%, less than 0.5% non-metallic inclusions, and less than 0.2% hazardous content
Quantity: Min 25 tonnes
Location: cif Chinese ports (Shanghai, Guangdong, Zhejiang, Tianjin, Shandong)
Timing: Within 5 weeks
Unit: US cents/lb
Payment: Cash against documents, letter of credit, telegraphic transfer; other terms normalized
Publication:Weekly, Monday. 3-4pm UK time.

MB-CU-0360 No2 copper wire/material, RCu-1C, 2B (birch/cliff), cif China, LME discount, US cents per lb
Quality: Definitions of RCu-1C and RCu-2B as stipulated in China’s GB/T 38471-2023 document. RCu-1C (#2 copper wire, ISRI code birch) requires a minimum copper content of 97%, less than 0.8% non-metallic inclusions, and less than 0.3% hazardous content. RCu-2B (#2 copper materials, ISRI code cliff) requires a minimum copper content of 97%, less than 0.8% non-metallic inclusions, and less than 0.3% hazardous content.
Quantity: Min 25 tonnes
Location: cif Chinese ports (Shanghai, Guangdong, Zhejiang, Tianjin and Shandong)
Timing: Within 5 weeks
Unit: US cents/lb
Payment: Cash against documents, letter of credit, telegraphic transfer; other terms normalized
Publication:Weekly, Monday. 3-4pm UK time.

In addition, the Fastmarkets is proposing to launch the following grades:

Bare bright copper wire, RCu-1A (barley/millberry), cif China, LME discount, US cents per lb
Quality: Definitions of RCu-1A as stipulated in China’s GB/T 38471-2023 document. RCu-1A (bare bright wire, ISRI code barley, also known as millberry) requires a minimum copper content of 99.7%, less than 0.3% non-metallic inclusions, and less than 0.2% hazardous content.
Quantity: Min 25 tonnes
Location: cif Chinese ports (Shanghai, Guangdong, Zhejiang, Tianjin, Shandong)
Timing: Within 5 weeks
Unit: US cents/lb
Payment: Cash against documents, letter of credit, telegraphic transfer; other terms normalized
Publication: Weekly, Monday. 3-4pm UK time.

No1 copper wire nodules, RCu-3A (Clove), cif China, LME discount, US cents per lb
Quality: Definitions of RCu-3A as stipulated in China’s GB/T 38471-2023 document. RCu-3A (#1 copper nodules, ISRI code clove) requires a minimum copper content of 99.7%, less than 0.3% non-metallic inclusions, and less than 0.2% hazardous content.
Quantity: Min 25 tonnes
Location: cif Chinese ports (Shanghai, Guangdong, Zhejiang, Tianjin, Shandong)
Timing: Within 5 weeks
Unit: US cents/lb
Payment: Cash against documents, letter of credit, telegraphic transfer; other terms normalized
Publication: Weekly, Monday. 3-4pm UK time.

No2 copper wire nodules, RCu-3B (Cobra), cif China, LME discount, US cents per lb
Quality: Definitions of RCu-3B as stipulated in China’s GB/T 38471-2023 document. RCu-3B (#2 copper nodules, ISRI code cobra) requires a minimum copper content of 98%, less than 0.8% non-metallic inclusions, and less than 0.3% hazardous content.
Quantity: Min 25 tonnes
Location: cif Chinese ports (Shanghai, Guangdong, Zhejiang, Tianjin, Shandong)
Timing: Within 5 weeks
Unit: US cents/lb
Payment: Cash against documents, letter of credit, telegraphic transfer; other terms normalized
Publication: Weekly, Monday. 3-4pm UK time.

These prices form part of the Fastmarkets scrap package.

The consultation period for this proposed launch and amendment starts from February 5 and will end on March 9. The launch and amendments will take place, subject to market feedback, with the first publication on March 16.

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 pricing@fastmarkets.com and metalsrecycling@fastmarkets.com. Please add the subject heading “re: CIF China copper scrap.”

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 the Fastmarkets methodology page.