Dear Valued Clients,
In order to continuously enhance the market representativeness and methodological rigor of SMM’s USD-denominated price data, and to more accurately reflect the differences in export tax rebate policies across commodities, SMM will optimize the conversion methodology applied to its USD prices. The details are set out below:
I. Adjusted Conversion Methodology
Following the adjustment, USD prices will be uniformly converted using the selling rate quoted by the Bank of China. The exchange-rate reference point is determined as follows: prior to 26 June 2026, the rate published at approximately 9:30 a.m. (Beijing time) on the same day is used; from 26 June 2026 onwards, the last quote of the previous trading day, at approximately 23:59 (Beijing time), is used. The conversion is then divided into two scenarios depending on whether a commodity is eligible for an export tax rebate:
1. Commodities eligible for rebate rate (rebate rate shown as ≥ 0):
USD Price = (Original RMB Price − Rebate Amount) ÷ Exchange Rate
where: Rebate Amount = Original RMB Price ÷ (1 + VAT Rate) × Export Rebate Rate
2. Commodities not eligible for rebate rate:
USD Price = Original RMB Price ÷ Exchange Rate
For commodities priced in ounce, the numerator of the above formulas is additionally multiplied by the unit conversion factor (1 Troy Ounce).
II. Reason for the Adjustment
China applies differentiated export tax rebate policies to commodity exports. For most rebate-eligible commodities, the rebate rate is lower than the VAT rate, and the non-refundable portion (the gap between the VAT levied and the rebate granted) constitutes a real cost to exporters; certain commodities, by contrast, are not eligible for any export rebate at all. The previous methodology uniformly assumed that VAT was fully refundable and deducted it accordingly, which systematically understated the USD price level of the commodities concerned. Under the adjusted methodology, USD prices are uniformly derived by deducting the actually refundable amount from the VAT-inclusive RMB price: for rebate-eligible commodities, only the actually refundable portion is deducted; for commodities not eligible for rebate, no deduction is made and the VAT-inclusive price is converted directly. This enables the USD prices to more faithfully reflect the cost structure and market reality of export trade for each commodity, and aligns more closely with the IOSCO principle that price assessments should objectively reflect the actual conditions of the underlying market.
III. Impact
Following the adjustment, the historical USD price of commodities eligible for rebate rate (rebate rate ≥ 0) and those not eligible will change accordingly, and historical data comparisons may be affected; please take this into account in your data application and back-testing.
IV. Effective Date
This adjustment takes effect on June 26, 2026.
SMM remains committed to the principles of openness, transparency, and traceability in its methodology, and to providing the market with high-quality price benchmarks. Should you have any questions, please contact us at datateam@smm.cn .
Shanghai Metals Market (SMM)
June 25, 2026