Metals Trading – Focusing on Assay Management

Assay management is a crucial and complex aspect of metals trading. Concentrates in particular depend heavily on properly managing assays, and in the commodity management/CTRM space, concentrates are recognised as one of the most challenging commodities for software to support. Premiums, discounts and penalties for each element within the ore need to be correctly factored into the valuation for each concentrates contract according to the assay results. And for refined metals, grades, shapes and location can all play a role in pricing and valuations. Managing these assays effectively is an integral part of contract management; impacting client relationships, deal profitability and asset turnover. There has been a strong technological shift in recent years towards commodity management software that automates and simplifies assay management, amongst other processes, as organisations look to unlock these benefits. But as customer demand patterns shift in future, will assay management also need to adapt? What will the future look like? Responsible sourcing will play a greater role in the near future. The LME in particular is making several changes across different metals, including introducing new reporting requirements. For some contracts, this will essentially mean a new type of assay will need to be managed for each… continue reading

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Source: CTRM Center

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