I. Adjustment Background
The original calculation formula for the discount of secondary copper rod against copper futures was affected by the price spread between futures contracts around the delivery date, which could cause deviations in the discount values, thereby compromising the objectivity, rationality, and market reference value of the data to a certain extent.
The original calculation formula for the discount of secondary copper rod against copper futures was:
Discount of secondary copper rod against copper futures = Daily price of secondary copper rod − Closing price of the front-month copper futures contract at 11:30
II. Survey Basis
To optimize the data calculation logic and align with actual market trading practices, SMM conducted a targeted survey on the calculation method for the discount of secondary copper rod against copper futures, engaging in in-depth communication with major secondary copper rod producers in five provinces: Jiangxi, Hubei, Anhui, Henan, and Hebei.
The survey results showed that enterprises in the industry generally use the price of the next-month futures contract to calculate the discount against futures one day before the futures delivery date, thus avoiding the impact of price fluctuations around the delivery date and ensuring that the discount data remains stable and reflects the true market level. Based on the common operational practice in the industry, SMM has optimized and adjusted the current calculation formula.
III. Adjustment Plan
Effective September 1, 2026, the calculation formulas for the following five indicators of discounts of secondary copper rod against copper futures will be adjusted: On the day before the futures delivery date and on the futures delivery date itself, the next-month futures contract will be used as the calculation basis; on all other trading days, the original calculation formula will remain unchanged.
The scope of adjusted indicators is as follows:
Jiangxi secondary copper rod discount against futures (ID: s20021748)
Hubei secondary copper rod discount against futures (ID: s20152191)
Anhui secondary copper rod discount against futures (ID: s22816379)
Henan secondary copper rod discount against futures (ID: s20031833)
Hebei secondary copper rod discount against futures (ID: s20031843)
IV. Additional Information
This adjustment only involves changes to the calculation basis of the above five indicators at specific times (the day before and on the futures delivery date). The frequency, timing, presentation format, and other related business processes of data release remain unchanged.
For any questions, please feel free to contact the SMM copper scrap team.
SMM
August 25, 2026