To better serve industry clients and more closely align with the market, SMM plans to add 2 copper scrap price points, which will be officially launched on June 4, 2026.
Shanghai Metals Market (SMM) Copper Scrap Price Assessment Methodology
1 New Price Points
Copper Scrap - US
- US No.1 Copper Material CIF China (Payability)
- US No.2 Copper Material CIF China (Payability)
2 SMM Price Assessment Methodology General Provisions
Shanghai Metals Market (hereinafter referred to as SMM) is a fully independent third-party service provider that does not participate in any actual transactions. Instead, it maintains close communication with buyers or sellers of transactions in the capacity of a market observer or organizer, and provides relevant services to the market. This document specifies the standards for formulating SMM copper scrap price assessments. The purpose of establishing these standards is to create a transparent and verifiable SMM price determination mechanism.
3 Formation of SMM Copper Scrap Price Assessments for the US Region
3.1 Purpose of New Price Point
In view of the heightening volatility in COMEX prices since 2025, the global recycled copper raw material market has generally shifted toward the LME pricing system. To closely track market dynamics and accurately reflect the true price levels of recycled copper raw materials, SMM plans to introduce new weekly LME discount/premium (or coefficient) quotes for US No.1 Copper Material CIF China and US No.2 Copper Material CIF China. These newly added quotes will be updated simultaneously with the existing weekly COMEX discount prices for US No.1 and No.2 Copper Material CIF China. This initiative aims to provide upstream and downstream enterprises within the industry chain with a more timely and well-aligned pricing anchor, assisting businesses in precise cost calculation and trading strategy optimization. Concurrently, the launch of these new quotes will further enhance the transparency and transaction efficiency of global recycled copper trading, empowering the synergistic development of the industry chain. SMM will collect and publicly release the prices based on a unified methodology for industry-wide reference. SMM Price Members will be able to access relevant historical prices simultaneously.
3.2 SMM Copper Scrap Price Assessment Methodology
3.2.1 Price Point Definitions
The reference standards for the newly publish price points are based on GB/T 38471-2023. Should there be any modifications, SMM will promptly revise them according to the actual situation. The newly added price points currently include No. 1 Copper Material (Cu ≥ 99.2%) and No. 2 Copper Material (Cu ≥ 97.0%). The price point is defined as CIF Ningbo Port, China, based on the LME * coefficient, with a quotation period of M+1 (where M represents the month of arrival). The delivery location is China, with a delivery window within 2 months, and the minimum transaction volume required is 25 metric tons (actual weight).
3.2.2 Price Terms
Prices are CIF guidance prices, expressed in coefficients (%).
3.2.3 Payment Methods
The prices reflect transactions with payment terms including TT or other conventional payment methods.
3.2.4 Price Format and Publication Time
Prices are published in a range format, with a lowest price and a highest price respectively. For example: US no.1 Copper Material CIF China: 95.5%-96%. The newly added price points are assessed on a weekly basis. At 3:30 PM on the last trading day of each business week, SMM will publish the prices on its website.
3.2.5 Price Collection Methods
In accordance with the price collection confirmation agreement, SMM price analysts will regularly collect price information from price collection contacts in the secondary copper industry via telephone, WeChat, email, and other means. The price information includes completed transaction prices, the enterprise's most likely expected pending transaction prices, etc. All instant messaging content and other communication records, as well as records of any face-to-face communications, will be archived; details of telephone communications will be recorded and entered into the database. SMM analysts shall comply with the Compliance Policy when reporting to their supervisors any communications from market participants that involve coercion or threats, or any solicited bids that attempt to influence the assessment. Once the price is published, SMM will not make any corrections or adjustments on the same day.
3.2.6 Data Standardization
Although SMM has standardized definitions for our prices, transactions in the market are diverse. The price of each transaction is influenced by numerous factors, including order size, product brand, delivery time, payment terms, etc. SMM will comprehensively consider quotations, bids, and transaction information in the market and align them with our standards.
Enterprises across the industry chain are welcome to participate in and support SMM in better serving enterprises along the secondary copper industry chain.
For any inquiries, please contact us by phone.
SMM Copper Research Team: Aw Yong Yi Cheong, Huang Yu Tong
Contact: +6011-35798397, +86-021-20707843