Calculation method for copper and aluminum import costs

Thread Content

LME import cost = (LME March copper price + 3-month spot premium/surcharge + premium/surcharge between Shanghai copper and LME copper) * exchange rate * (1 + tariff rate) * (1 + value-added tax rate of 17%) Other costs: Tariff rate: 2%; Value-added tax rate: 17%; Other costs: 150–200 yuan. Example: On August 20, 2004, the price of LME March copper was 2777 US dollars, the premium for March copper over spot prices was 65 dollars, the CIF premium was set at 85 dollars per ton. The import tariff is 2%, and the value-added tax is 17%. The exchange rate used is 8.28. Other domestic costs such as delivery fees upon arrival, inspection fees, and port entry fees amount to 150 yuan per ton. 　　Thus, the LME import cost = (2777,6585) * (1.2%) * 1 * (17%) * 8.28150 = 29,072 yuan. The reference price in the spot market on that day was between 28,870 and 28,940 yuan; with the copper prices differing between the international and domestic markets, importers’ enthusiasm for participating in the market decreased.