In response to market demand, S&P Global Platts is proposing to launch a copper concentrate treatment and refining charges (TC/RC) differential for producer-to-trader pricing, CIF China basis, effective Dec. 1, 2021.
The new assessment would be a differential reflecting the premium or discount for TC/RCs being achieved in trading activity between producers and traders over Platts CCC benchmark assessment.
TC/RC values in spot transactions between producers and traders routinely diverge from those achieved in the rest of the market. This is primarily due to non-standard and/or highly-customized assay exchange practices, but can also be affected by mining companies' commercial strategies and general market fundamentals. A number of market participants have said that the publication of such a differential would be helpful in providing more transparency to the copper concentrates market.
The assessment would reflect spot market value of clean copper concentrates of any origin at 1630 Singapore time, for typical trading activity between producers and traders, expressed as a TC/RC differential to the Platts Clean Copper Concentrate CIF China Treatment Charge (PCCCB00) and Clean Copper Concentrate CIF China Refining Charge Cts/lb (PCCCC00). All specifications for this new differential would follow the existing Platts Clean Copper Concentrate CIF China specifications here. Observed quotation periods (QPs) would be normalized to align with the standard QP for Platts CCC.
The assessments would consider trade information reported to Platts and published throughout the day, including firm bids and offers, transactions and indications, as well as any other data deemed relevant to the assessment process. Full description of the Platts assessments methodology and data hierarchy can be found here.
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