Copper Trading Guide
Refined copper trades primarily as LME Grade A cathode (BS EN 1978:1998, Cu-CATH-1). Copper concentrates trade at a discount to LME reflecting treatment and refining charges (TC/RC) negotiated annually between miners and smelters.
Pricing benchmark
LME Copper (3-month), COMEX HG copper, SHFE copper, physical premiums: ER / CIF Shanghai / Rotterdam
Commercial grades
| Grade | Specification | Notes |
|---|---|---|
| LME Grade A cathode (Cu-CATH-1) | Cu ≥99.9935%, BS EN 1978:1998 | The global reference grade; LME-warrantable. |
| Cu-CATH-2 | Cu ≥99.90% | Non-LME industrial grade for wire rod, tubes. |
| Blister copper | Cu ~97-99% | Smelter intermediate; priced against LME with penalty for gangue. |
| Copper concentrate | Cu 20-35%, Au/Ag credits, penalty elements | TC (treatment charge, $/dry MT) + RC (refining charge, ¢/lb) deducted from LME payable value. |
Typical technical specifications
| Copper content | 99.9935% (Cu-CATH-1), 25-30% (concentrate) |
| Payable factor (concentrate) | 96.5% of Cu content typical |
| TC / RC (2024 benchmark) | $80/dmt / 8.0¢/lb; falls sharply in tight markets |
| Impurities (concentrate penalties) | As, Sb, Bi, Hg, Pb, Zn, F, Cl |
| Moisture (concentrate) | 8 - 10%; TML for IMSBC Code compliance |
Top exporters
Calculators to price a cargo
Copper is classified under HS 7403 (refined), 7404 (scrap), 2603 (concentrate). Open the full HS profile →
Frequently asked questions
Grade A cathode is refined copper meeting BS EN 1978:1998 (Cu-CATH-1) with 99.9935% minimum copper. Only brands registered with the LME can be warranted for delivery. Chinese cathode requires SHFE warrantable brand for physical settlement.
Treatment Charges (TC, $/dry MT of concentrate) and Refining Charges (RC, ¢/lb of payable copper) are the fees smelters deduct from the LME payable value. They are negotiated annually between the largest miners and smelters. Tight concentrate markets push TC/RCs down.
Payable Cu = (concentrate Cu% × payable factor, usually 96.5%) × LME price - TC - RC + Au/Ag credits - penalty deductions. The Basis Calculator can model each line.
Copper is not in the initial CBAM scope (which covers cement, iron & steel, aluminium, fertilisers, electricity and hydrogen). It is a listed candidate for a 2027+ expansion. Track EU Commission delegated acts.
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