Copper: Trading
London, New York, Shanghai and India's MCX
London, New York, Shanghai and India's MCX What this tab covers How and where it is bought and sold: who buys and sells, exchanges and benchmarks, contract types, the big trading houses and how prices are discovered.Refined copper is priced on three exchanges: the LME in London, COMEX in New York and the Shanghai Futures Exchange; India trades it on MCX. Physical cathode sells at the exchange price plus a premium. Concentrate is sold at the LME price less treatment and refining charges negotiated with smelters (Tilton & Guzmán). Those charges averaged about 23% of the copper price in 1980-2005, then fell to 5% in 2007 under Chinese buying (Humphreys). In 2025 COMEX averaged about 480 cents per pound against 440 on the LME, a gap opened by US tariff fears.
Where it is bought (buyers)
- Custom smelters in China, Japan, South Korea, India (Hindalco, Adani Kutch Copper), Spain and Bulgaria buy concentrate under annual contracts and spot cargoes
- Wire-rod, tube and brass mills buy cathode on annual contracts at an exchange price plus a regional premium
- Brass and rod mills and secondary refiners buy scrap priced at a discount to refined copper
Where it is sold (sellers)
- Miners in Chile, Peru, the DRC, Indonesia, Australia and the US sell concentrate to smelters and traders
- Codelco, Glencore and others sell cathode under annual contracts, with premiums set each year for China, Europe and other regions
- The DRC and Chile are the largest exporters of refined copper by value (26% and 19% of 2024 exports, UN Comtrade)
Exchanges and benchmarks
| Venue | Contract | Notes |
|---|---|---|
| London Metal Exchange (LME) | Copper Grade A, 25 t lots | Global reference price; official and closing prices used in most physical contracts |
| COMEX (CME Group) | High-grade copper, 25,000 lb | US benchmark; traded at a premium to the LME in 2025 on tariff risk |
| Shanghai Futures Exchange (SHFE) | Copper cathode, 5 t lots | Chinese domestic price; large volumes |
| MCX (India) | Copper futures in rupees per kg | Indian reference for fabricators and traders |
Contract types
- Concentrate sold at LME price minus treatment and refining charges (TC/RCs), set in annual benchmark talks between miners and Chinese and Japanese smelters
- Annual cathode supply contracts at LME or COMEX average plus a fixed regional premium
- Spot cathode and concentrate cargoes priced on a monthly average quotational period
- Scrap priced as a discount to the exchange price
Top trading houses
- Glencore
- Trafigura
- Mercuria
- IXM
- Gunvor
How prices are discovered
- LME official and closing prices; COMEX and SHFE futures
- Physical premiums and TC/RCs assessed by Fastmarkets, S&P Global Platts, SMM and Mysteel
- Annual benchmark TC/RC settlements and Codelco premium offers reported by Reuters and Bloomberg