Platts to revise copper concentrate discharge ports, gold payable scales; discontinue brand differential

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

Platts will 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 will also discontinue its brand differential calculations to focus its clean copper concentrate coverage on the most relevant assessments.

The changes will take effect Sept. 1, 2022.

Platts originally proposed these changes on June 3, and the relevant note can be found at:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/060322-platts-proposes-to-revise-copper-concentrate-discharge-ports-gold-payable-scales-considers-brand-differential-discontinua

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 the planned changes, Platts will 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. The payable scale for 5-10g gold content will change as follows:

The following assessments are affected by the specifications changes:

Brand differentials

Platts has received 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 are affected by the brand differential discontinuations:

The planned discontinuations follow 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.

Please send comments and questions to platts_asia_copper@spglobal.com and pricegroup@spglobal.com.

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