Platts clarifies QP normalization approach in CIF China copper concentrate assessments

Platts, part of S&P Global Energy, clarifies that its approach to quotation period (QP) normalization in its daily clean copper concentrate CIF China treatment charge and refining charge assessments is based on prevailing spot market information and may include pricing data from market surveys for value differences arising from QP variations.

The Platts methodology expresses TC/RC over a basis quotation period of M+3, with M being the loading month. Datapoints with differing quotation periods are normalized to the basis specification.

Platts has observed that TC/RC for different QPs in copper concentrate spot contracts may not fully reflect copper futures intermonth spreads. Platts, therefore, normalizes for QP differences daily, primarily based on observed market practice and feedback, and may refer to futures intermonth spreads, where relevant, as a related market that may provide indications.

The above clarification applies to the following assessments and associated averages:

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

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