2025-11-17 – Weekly Purchasing News : Copper lot size debate: COMEX vs LME

Last week, our forum saw lively discussions around practical challenges and career insights in the purchasing field. Members were particularly engaged in conversations about the differences in copper lot sizes between COMEX and LME, sparking debates on market strategy. Another focal point was the critical impact of small components on production lines, highlighting the importance of meticulous supply chain management. Additionally, career-related threads provided valuable perspectives on entering and excelling in purchasing roles.


This Week’s Hot Topics

Copper lot sizes: COMEX vs LME
This discussion dives into the nuances of copper trading, comparing lot sizes on COMEX and LME. It’s a valuable read for anyone dealing with commodity procurement and market strategy.
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When a 3Β’ part stalls a line
A reminder of how even the smallest part can halt production, emphasizing the need for vigilance in supply chain processes.
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FAQ/Guidelines
This thread provides a solid foundation for new members to understand forum rules and make the most of their experience.
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Admin Guide: Getting Started
An essential guide for forum administrators, offering step-by-step instructions to manage community interactions effectively.
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Thinking About a Career in Purchasing? Let’s Break It Down
A comprehensive overview for those considering a career in purchasing, detailing the skills and pathways to success.
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How Did You Land Your First Purchasing Job?
Members share personal stories and strategies about breaking into the purchasing field, offering inspiration and advice for newcomers.
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What Makes a Great Purchasing Professional?
A thought-provoking discussion on the qualities and skills that define excellence in purchasing roles.
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What’s the Most Expensive Item You’ve Ever Had to Source?
A light-hearted yet intriguing thread where members reveal their most costly procurement experiences.
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Guess the Term: β€˜Just in Time’ or β€˜Just in Trouble’?
This interactive thread invites members to weigh in on the benefits and pitfalls of β€˜Just in Time’ inventory strategies.
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How Many Suppliers Should You Keep for One Product?
A practical discussion offering insights into supplier management and how to balance risk with efficiency.
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Thank you for staying engaged with our community. Your contributions make this forum a valuable resource for all of us in the purchasing field.

1 Like

I’ve cut the COMEX/LME lot mismatch by building MRP in metric tons with a simple β€˜25k lbs vs 25t’ crosswalk that auto-batches to full lots and pushes the odd-lot tail to a small OTC swap β€” works great unless demand is spiky, then I hedge the tail daily.

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Ended the COMEX (25k lbs) vs LME (25t) headache by pushing it into terms: hedge on LME in tonnes, buy in lbs with a +/-2% weight tolerance and a quarterly washout so mills round to full lots and we true up the tail. Pairs nicely with @h_rogers21’s crosswalk; only caveat is finance has to track basis/FX separately or the P&L gets noisy.

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Building on @owen89’s terms approach, we pair the hedge with a scrap buyback so the β€˜tail’ becomes planned supply β€” mills credit our returns weekly and we true up to net copper content, sweeping copper crumbs back into the pie. Caveat: if your scrap stream is light, a monthly EFP or a micro future to fine-tune the edge is cleaner β€” anyone seeing better fill costs on micros lately?

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Agree with @Guide: LME hedge at 99.6% yield; leftover on 25t lots to consignment, but confirm title terms.

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I’ve had better results pricing rod POs as contained Cu (kg) with a separate fabrication charge and hedging the contained amount on an M+1 average β€” weight drift and scrap stop whipsawing margin. @Guide is right on title; also lock in when storage fees start if you park residual tonnage at the warehouse β€” anyone else doing this?

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