Equipment 31% Building construction. Copper scrap Copper bearing ores are extracted

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1 LME Copper SETTING THE GLOBAL STANDARD Copper was the first metal traded on the London Metal Exchange (LME) when it was founded in Due to its widespread use in industry, copper is viewed as being closely connected to macroeconomic events so much so that some say Dr Copper has a PhD in economics. Copper is one of the oldest metals known to man, which was discovered and first used around 1, years ago for coins and ornaments. It was an essential element in transitioning from the Stone Age to the Bronze Age, as copper is mixed with tin to create bronze. The Egyptians used copper to sterilise water and treat infections. It is a good conductor of electricity as well as being ductile, so it was also extremely important in the industrial revolution. Copper s main industry uses are: Wiring Piping Electric product manufacturing Building construction Infrastructure Power generation Transportation Copper mine production by country 216 (thousand metric tonnes) Chile Peru China United States Australia Congo Zambia Mexico Indonesia Canada Russian Fed. Kazakhstan Poland Mongolia Brazil Iran Lao Spain Bulgaria Turkey Equipment 1, 2, 3, 4, 5, 6, Source: ICSG 31% 11% Latin America Industrial 13% Transport 41% Oceania Africa 5% 9% Copper production by region % Asia North America Latin America 2% 12% 15% Oceania.4% 1% Europe North America 18% Europe 1% Africa Its use in construction is preferred in part because of its aesthetic appeal but also because it does not burn, melt or release toxic fumes in the event of a fire. It also protects water systems from dangerous bacteria. The metal is one of the few that does not lose its chemical or physical properties during the recycling process. Building construction Source: ICSG Copper consumption by industry % 16% Infrastructure Source: ICSG Copper consumption by region % Asia Copper production process Crushing Milling Flotation Electrolysis refinement Ore mining Concentrates Anode Cathode Copper scrap Copper bearing ores are extracted The ore is crushed and ground followed by a concentration by flotation Sometimes the concentrates are roasted but all are transformed into a matte during the smelting process, before being converted and refined to produce copper anodes The anodes are refined predominantly by electrolysis to create copper cathodes. This is classed as primary copper production. The deliverable of an LME Copper contract is Grade A copper cathode During the semi-fabricated or finished product manufacturing stage, copper scrap is sometimes generated and is regarded by the industry as secondary production DISCOUNT LME Price PREMIUM

2 Trading copper on the LME Adding copper to a portfolio can help to diversify the investment profile. All the LME s base metals contracts have close ties with the physical market. The prices discovered on our markets are used the world over in physical contracts, and because they can be physically settled using the LME warehouse network LME prices converge with the physical market. The interaction on the LME between the physical and financial communities provides highly liquid and deep order books with tight spreads. The LME s unique prompt date structure allows you to trade daily out to three months, weekly out to six months and monthly out to ten years. LME Copper facts Lot size: 25 metric tonnes Tick value: $12.5 Cost to tick ratio:.216 Contract types: Futures, Options, TAPOs, Monthly Average Futures, LMEminis and HKEX London Minis traded on HKEX derivatives platform. Useful reports and data LME Copper trading volumes, price and stocks data can be found on our website: lme.com/reports. Get real-time and historical LME trading data from any of our licensed distributors by visiting: lme.com/licenseddistributor For copper-specific data visit: lme.com/copper LME trading venues and prices Telephone The Exchange supports an inter-office market between LME members, which operates 24 hours a day. All telephone trades are matched and cleared through our matching platform, LMEsmart, and clearing house, LME Clear. Electronic LMEselect is our electronic trading platform, which integrates with member trading platforms via a FIX API, either from member sites or via data centres to facilitate low latency trading strategies. LMEselect is open for trading between 1: and 19: (London time). LMEselect is only available to LME members. Clients of LME members can access LMEselect via member systems or member-sponsored Independent Software Vendor (ISV) platforms (see below for more details). The Ring The Ring, our open-outcry trading floor, is central to the process of price discovery. Each LME metal is traded in highly liquid five-minute Ring sessions, which are themselves representative of global market supply and demand. Copper is traded on the Ring at these times: 12:-12:5, 12:3-12:35, 15:1-15:15, 15:5-15:55 and ceases trading at 16:35 (London time). Prices The LME Official Price for copper, discovered on the Ring between 12:3-12:35, is used as the global reference. Contracts for material in a pre-refined state will be priced at a discount to the LME price and material further along the value chain, at a premium. The LME Copper Closing Price, discovered at 16:35, is used for margining and valuation purposes. ISVs Members and their clients may choose to access LMEselect via member-sponsored ISV platforms. Client traffic passes through an ISV pre-trade risk engine endorsed and fully controlled by the sponsoring member s compliance team. The following ISVs have passed LME conformance tests for order routing applications connecting via the LMEselect API for LME Copper: Contracts FFastFill Europe Limited OnixS.biz ATPlatform Technology Ion Trading Patsystems UK Limited Trading Technologies International Inc Fidessa plc Stellar Trading Systems RTS Realtime Systems ObjectTraining FIS (SunGard) Trading Screen Inc Cunningham Trading Systems LLC Redline Trading Solutions FlexTrade UK Limited Omnesys CQGT LLC Shanghai Feishu Software Technology Co. Ltd KCG SharpPoint System E-Sunny Ullink EPAM Systems, Inc Greeksoft Technologies PVT. LTD 3M 3rd Weds 3rd Weds - 3rd Weds LME options

3 LME Copper trading data Average daily volume Daily volume for LME Copper averages over 14, lots per day. LMEselect accounts for about 4% of all market traded volume. Lots 18, 16, 14, 12, 1, 8, 6, 4, 2, Futures Options TAPOs Month price and intraday volatility The 3 Month (3M) price represents the price agreed to settle or deliver material three months from the time that the price is agreed and concentrates liquidity on one day. Volatility is an important parameter for some participants as it can often determine the level of involvement in a financial instrument. US dollars ($) 12, 1, 8, 6, 4, 2, Copper 3M Price Volatility % (RHS) Volatility (%) 3rd Wednesday price 3rd Wednesday contracts are monthly futures that exist within the current prompt date structure for all major LME contracts expiring on the 3rd Wednesday of each month. US dollars ($) 7, 6, 5, 4, 3, 2, Copper 3W price Copper 3W ADV (RHS) 35, 3, 25, 15, 1, Lots 1, 5, J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J

4 3M to 3rd Wednesday spread This is the spread between the 3M rolling forward contract and a monthly futures contract or an adjustment of a position from the daily expiry (three months forward) into monthly expiry. Month 2 Month 3, US dollars ($) Calendar spread 3rd Wednesday to 3rd Wednesday spreads are calendar spreads used for rolling a position from one month to another. Month 2 Month 3, US dollars ($) LME Copper arbitrages Regional prices for copper are impacted by different factors including economic, physical and logistical influences. Traders can arbitrage the differences in copper price on the Shanghai Futures Exchange (SHFE), the Chicago Mercantile Exchange (CME) and the Multi Commodity Exchange of India (MCX). US dollars ($) 7,5 7, 6,5 6, 5,5 5, LME 3M SHFE (EX VAT 17%) MCX CME 4,5 4, J 216 F M A M J J A S O N D 217 J F M A M J J A S O N

5 LME Copper contract specification Contract specification Contract names and codes Contract type Delivery type Lot size Price quotation Clearable currencies Trading venues Trading hours Contract period LME Copper LME Copper (CA) Futures Physically settled 25 metric tonnes US dollars per metric tonne US dollars, Japanese yen, sterling, euro Ring, LMEselect and inter-office telephone Ring: 11:4-17: London time LMEselect: 1: - 19: London time Inter-office: 24 hours a day Daily: out to 3 months Weekly: 3 out to 6 months Monthly: 7 out to 123 months Minimum price fluctuation (tick size) per metric tonne Venue Ring LMEselect Inter-office Outright $.5 $.5 $.1 Carries $.1 $.1 $.1 Termination of trading Margining Up until the close of the first Ring the day before the prompt date Contingent Variation Margin applied For more information about LME Copper please visit our website at lme.com/copper or get in touch with the team: sales@lme.com

6 V1/1117/WPB The London Metal Exchange (the LME ), 217. The London Metal Exchange logo is a registered trademark of The London Metal Exchange. All rights reserved. All information contained within this document (the Information ) is provided for reference purposes only. While the LME endeavours to ensure the accuracy, reliability and completeness of the Information, neither the LME, nor any of its affiliates makes any warranty or representation, express or implied, or accepts any responsibility or liability for, the accuracy, completeness, reliability or suitability of the Information for any particular purpose. The LME accepts no liability whatsoever to any person for any loss or damage arising from any inaccuracy or omission in the Information or from any consequence, decision, action or non-action based on or in reliance upon the Information. The Information does not, and is not intended to, constitute investment advice, commentary or a recommendation to make any investment decision. The LME is not acting for any person to whom it has provided the Information. Persons receiving the Information are not clients of the LME and accordingly the LME is not responsible for providing any such persons with regulatory or other protections. All persons in receipt of the Information should obtain independent investment, legal, tax and other relevant advice before making any decisions based on the Information. LME contracts may only be offered or sold to United States foreign futures and options customers by firms registered with the Commodity Futures Trading Commission (CFTC), or firms who are permitted to solicit and accept money from US futures and options customers for trading on the LME pursuant to CFTC rule 3.1. THE LONDON METAL EXCHANGE 1 Finsbury Square, London EC2A 1AJ Tel +44 ()