JSC “Russian Copper Company”, Ekaterinburg, Russia:
I. A. Altushkin, Chairman of Board of Directors

Yu. A. Korol, Vice-President, e-mail: u.korol@mail.ru

“Ore and Metals” Publishing House, Moscow, Russia:

A. G. Vorobev, Deputy Chief Editor of a Journal “Tsvetnye Metally”

Ural Federal University named after the first President of Russia B. N. Yeltsin, Ekaterinburg, Russia:
N. R. Kelchevskaya, Head of a Chair of Economics and Management at Metallurgical and Mechanical Engineering Enterprises

Pricing of non-ferrous metallurgy products on the world markets is quite different than the one in Russia. If the market operations are not with exchange goods, but with their raw materials, then all marketers try to unify and simplify the pricing as much as possible. This, in its turn, simplifies the negotiations and price squaring, and the price formula helps to do it. Some elements of this formula are standard, internationally-recognized and hardly discussed. These elements for blister copper are metal extraction loss and quotations of London Metal Exchange (LME) for copper and LMEprecious or Financial Times quotations for gold and silver. It only remains to the parties to agree upon the recycling discounts, cost periods of price-fixing and supply basis. The price formula for blister copper enables the suppliers and buyers to estimate their competitive opportunities in the international market conditions. In comparison with the world level, the refining charge and metal loss indexes, obtained at the enterprises, give the opportunity to consider the production efficiency both from technological and from economic points of view. The price formula, the global values of refining charge, and discounts on the paid amount of metals are the powerful market regulators making the influence on the production, ways of enterprise improvement and expansion of copper production capacity. The described version of standard blister copper price formula is illustrated by the certain example of calculation of the cost of a ton of blister copper for the accepted conditions based on the formed prices in 2017.

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