Public Commentary: This article is a direct follow-up to our copper market breakdown. It exposes the empty rhetoric of brokers and “buyers” seeking unrealistic LME discounts with no upfront costs. Provided as market guidance only.

“Copper Cathodes at a Discount”… with No Upfront Fees

Another day, another fantasy.

“My buyer can take 10,000 MT per month, LME minus 8%, CIF ASWP, no upfront fee, DLC after inspection at destination.”

If you’ve spent more than a month in metals trading, you’ve seen this script. It’s not a proposal. It’s junk mail. Worse, it’s circulated by people who don’t understand copper, trade finance, or basic economics. This piece explains why these requests are fundamentally broken—and why entertaining them is a waste of bandwidth.

How the Broker Chain Works (Or Fails to)

  • A broker gets a WhatsApp from another broker, who got a PDF from someone claiming to be close to a buyer.
  • They forward it without any commercial logic check, skipping due diligence, port specifics, or refinery coordination.
  • Eventually, someone pitches it to a real supplier, who stops reading by line three.

The entire chain is built on hearsay. There’s no contract, no credit, no logistics—and definitely no copper. Just a trail of email headers and delusion.

What These “Buyers” Are Actually Asking For

Let’s break it down using their typical inquiry:

“10,000 MT/month of LME Grade A copper, LME –8%, CIF ASWP, no upfront cost, DLC after SGS at destination.”

  • LME –8%: That’s a $800–1,000/MT haircut on value. Even if the supplier had free copper, they’d lose money delivering it.
  • CIF ASWP: “Any Safe World Port” means they haven’t done basic route planning. No named discharge port = no insurance or freight quote = no trade.
  • No upfront fees: This means seller pays warehouse, port, freight, insurance, inspection, and finance—millions upfront—with zero risk protection.
  • DLC after SGS: Translation: no trade finance bank will fund this. A seller can't ship without a payment guarantee. No LC = no logistics = no deal.

Example of a Typical Inquiry

Subject: Urgent Copper Offer – Buyer Ready

Body:

Hello Sir,
My buyer is ready to purchase 120,000 MT annually of copper cathode. Must be LME minus 10%. No upfront cost. Seller to ship to ASWP, SGS at port, and payment via DLC after arrival. Kindly send FCO.

Regards,
Mr. Intermediary (5th in the chain)

This isn’t a trade opportunity. It’s a case study in how not to approach commodity markets.

Why the Fantasy Falls Apart

These so-called buyers and their brokers are chasing one thing: risk-free arbitrage. They want to receive copper, flip it immediately to a downstream counterparty at market price, and pocket the margin—without capital, credit, or exposure.

The problem? Real suppliers don’t give away product below LME. Trade finance isn’t available without a clean LC. And no shipper pays freight and insurance without collateral.

What Real Buyers Do

  • Sign a structured SPA with quantity, price, and port terms defined.
  • Provide a bank-issued, operative DLC from a top-tier institution.
  • Work with SGS, Intertek or Bureau Veritas for lot inspection and certification.
  • Coordinate logistics with clear Incoterms, warehouse timing and customs.

In other words, real buyers don’t waste time asking strangers for miracles. They build transactions around capital, compliance, and credibility.

FG Capital Advisors’ Position

We don’t respond to fantasy RFPs. We don’t chase ghost buyers. And we certainly don’t humor broker chains looking for unicorn-grade copper at liquidation prices. Our role is to arrange structured trade finance for credible parties who understand the real costs, risks, and logistics of physical delivery.

Next Step

If you represent a real buyer with capital, port clearance, and a valid payment instrument—or a seller with metal and warrants—we’ll talk. If you’re in it for WhatsApp flips and FCOs, keep scrolling.

This content is for educational and awareness purposes. It does not constitute a solicitation or offer. All parties are advised to conduct their own due diligence before engaging in any transaction.