Name the exact LME reference
The words ‘LME price’ are incomplete on their own. The commercial agreement should identify the applicable Cash or 3-Month reference, the pricing date or averaging period and the currency and unit—normally USD per metric tonne.
Purity and registration are different facts
A certificate showing 99.99% copper does not by itself establish that a producer brand is LME registered or exchange deliverable. The supply file should disclose chemical specification, producer, brand and registration status separately.
What creates the commercial differential
The physical transaction may price at a premium or discount to the stated benchmark. The differential can reflect brand, origin, quantity, delivery point, shipment timing, credit structure, freight and market conditions.
- Specification and certificate of analysis
- Brand and registration status
- Trial and monthly contract quantity
- Named Incoterm and destination
- Inspection, payment and documentation procedure