Platts proposes to revise copper concentrate discharge ports, gold payable scales; considers brand differential discontinuation

Platts, part of S&P Global Commodity Insights, is proposing to revise the specifications for its daily clean copper concentrate CIF China assessments to reflect the latest market dynamics.

Under this proposal, Platts would change the assessment location to delivered main north China ports, revised from main China ports currently, and split its 5-10g gold payable scale into two ranges to allow for more granular normalization.

Platts is also proposing to discontinue its brand differential calculations to focus its clean copper concentrate coverage on the most relevant assessments. The proposed changes would take effect Sept. 1, 2022, with feedback invited by June 17, 2022.

Port normalization, gold payable scales

Platts has observed freight differentials between ports in south and north China in some contracts relevant to spot negotiations and transactions for treatment and refining charges. Most contracts observed to date have also been settled basis CIF main north China ports. Under this proposal, Platts would normalize trades delivered to south China ports if freight is not already included in the contract price.

Platts has also observed that gold payable scales used in copper concentrate calculations have seen a steady spread between two common ranges, at 5-8g and 8-10g, as compared to the current payable scale at a straight 5-10g. Under this proposal, the payable scale for 5-10g gold content would change as follows:

The following assessments would be affected by the proposed specifications changes:

Brand differentials

Platts has received initial market feedback that the three major brand differentials -- clean copper concentrate CIF China versus Los Pelambres, clean copper concentrate CIF China versus Escondida, and clean copper concentrate CIF China versus Los Bronces – are not considered in typical market transactions and have limited relevance as industry references.

The following assessments would be affected by the proposed discontinuations:

The proposal to discontinue follows the launch of two new clean copper concentrate producer-trader differential assessments in December 2021, following market feedback at the time. Platts continues to closely monitor copper concentrate market trends in order to provide coverage most relevant to industry practice.

Platts clean copper concentrate assessments are published on Platts Nonferrous Metals Alert pages MTL0304 and PMA0304, in Platts Metals Daily, on Platts Market Center, in Platts Dimensions Pro and in the Platts price database under the codes listed above.

Market participants are invited to send all comments, feedback, and questions to platts_asia_copper@spglobal.com and pricegroup@spglobal.com by June 17, 2022.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.