COPPER LME

Grade A copper must conform to the chemical composition of one of the following standards:
a. BS EN 1978:1998 - Cu-CATH-1
b. GB/T 467-2010 - Cu-CATH-1
c. ASTM B115-10 - cathode Grade 1

Deliverable under the shape of Cathodes, with a tolerance of +/-2%

All copper deliverable against LME contracts must be of an LME-approved brand

Quality: BS EN 1978:1998 Copper Cathodes (Cathode grade designation Cu-CATH-1)

1)  (As + Cd + Cr + Mn + P + Sb) maximum 0.0015%

2)  (Bi + Se + Te) maximum 0.0003%, of which (Se + Te) maximum 0.00030%

3)  (Co + Fe + Ni + Si + Sn + Zn) maximum 0.0020%

4)  The Sulphur content shall be determined on a cast sample 

Quality: GB/T 467-2010 Copper Cathode (High-Purity Copper Cathode (Cu-CATH-1)

Quality: ASTM B115-10 Standard Specification for Electrolytic Copper Cathode (Cathode Grade 1)

Introduce

Copper is a ductile metal with high electrical and thermal conductivity. Pure copper is soft and malleable, the surface is orange-red. Copper is one of the important industrial metals because it is widely used as a conductor of heat and electricity; making construction materials, manufacturing electrical equipment and making alloys of various metals
Futures contracts are traded on the LME (London). In Vietnam, many companies that use copper as raw materials, such as manufacturing electric cables, regularly conduct hedging with copper futures contracts on the exchange. Individual investors are also very interested in copper price because it is directly affected by world economic fluctuations.

Special points

Copper is the second best conductor of electricity after silver. With reasonable price and flexibility, copper is commonly used as a conductor of electricity and heat such as wires, electrodes, electromagnets, electric motors, etc.

Figure 1. Production of electric wires and cables

Copper is one of the few metals that occurs naturally in a metal form that can be used directly instead of having to be mined from ore. Therefore, it was exploited by humans very early, about 8000 BC.

Exploit

Copper is mined or extracted as copper sulfide from ores extracted from the mine. The average copper content in the ore is only 0.4-1%. After that, the ore is crushed and ground and calcined with other substances to remove iron and sulfide. The product is then electrolyzed and electrically purified to produce pure copper.
Copper is 100% recyclable with no loss in quality. It is estimated that up to 80% of the currently mined copper is still in use. The copper recycling process requires less work than the extraction of copper from the ore. Recycled copper is a major source of copper in the modern world.
To date, about 700 million tons of copper have been mined around the world, worth over $4 trillion. Mines have been identified with reserves of about 2.1 billion tons of copper. Of which, about 65% are found in 5 countries: Chile, Australia, Peru, Mexico and the US.

Production and export

Chile is the leading country in copper mining output with 5.5 million tons in 2017 (accounting for 27.6% of global production). Chile is also home to 3 of the 10 largest copper mines in the world,  of which the largest is Escondida located in the Atacama desert (Figure 3). In 2018, this mine produced 1.21 million tons, more than double the second-ranked mine.

Figure 2. Top copper producing countries in the world in 2017

Figure 3. The world's largest copper mine Escondida, Chile

In 2017, copper import and export value was worth 58.8 billion USD. Two South American countries, Chile and Peru, account for 49% of export value. Chile exported $16.6 billion, while Peru exported $12 billion. (Figure 3)

Figure 4. Countries with the highest copper export value in 2017. Source OEC

On the import side, Asian countries import the largest amount of copper. In which, China imported about 25 billion USD, accounting for about 43%, mainly from Peru and Chile. Followed by Japan, India, and Korea. (Figure 4)

Figure 4. Countries with the highest copper import value in 2017. Source OEC

Factors affecting VNĐ price- Economic situation, especially in industries such as construction, equipment manufacturing
* Political situation in copper mining, import and export countries
* Employment situation at copper mines in the world.