Public Commentary: For sellers, title-holders and financiers tired of phantom inquiries, this guide breaks down the copper cathode chain and calls out internet brokers and fake buyers chasing impossible discounts. Provided for information only.

The Copper Market’s Phantom Menace: Exposing Fake Buyers and Their Broker Chains

Every week, FG Capital Advisors receives messages that follow the same tired script: “We have a buyer for 10,000 MT/month of copper cathodes, at LME minus 8%, CIF ASWP, no upfront fees, payment by non-operative LC.”

These aren’t leads. They’re fantasy. The people behind them aren’t buyers. They’re a chain of intermediaries—with no financial capacity, no understanding of the supply chain, and no credibility. They’re chasing a risk-free arbitrage opportunity that doesn’t exist—and never has.

Section 1: Why There Is No Discounted Copper

Physical copper does not trade at a discount to LME. It trades at LME plus a physical premium, covering brand, warehouse, freight, insurance, and seller margin. That premium can be $100 to $200/MT depending on region and timing. LME minus pricing isn’t a deal. It’s a red flag.

Smelters are under margin pressure. TC/RCs (their only processing income) are collapsing. Their job is to process concentrate into cathodes. Selling at a discount—after paying miners to supply them—means locking in a guaranteed loss.

Section 2: The Broker Chain That Pretends to Be a Buyer

Here's how the chain usually unfolds: an “intermediary” (often one-man shows with a Gmail address) receives a generic copper inquiry from someone calling himself a mandate. This mandate claims to “represent” a buyer in India, Turkey or China—usually unnamed. The mandate forwards the inquiry to a LinkedIn contact. That contact adds two more people. Nobody verifies anything. Nobody checks funding. Nobody even names a port.

One example from June 2025: A broker chain spanning 6 individuals forwarded a “buy” request for 12,500 MT/month at LME minus 9%, CIF “any safe port,” non-operative LC to be activated after delivery. When asked for the buyer’s name, they sent a LinkedIn profile with no last name and an expired phone number.

They weren’t looking to trade. They were hoping to flip a discount into a margin—without ever putting money down or carrying inventory. It's not brokerage. It's wishful thinking.

Section 3: Why Their Model Fails

  • They want the seller to fund everything: From warehouse lift-out to ocean freight, inspection, and marine insurance—without even a deposit.
  • They want no risk: The LC is “non-operative” until cargo is received. That makes it unfinanceable. No bank will lend without a payment guarantee.
  • They want magic margins: They think they can find copper at 8% below market, add 3%, and sell it to someone else without ever touching the goods.

This isn’t how trade works. The seller carries real costs. The bank expects a secure instrument. And the warehouse doesn’t release anything without full payment or warrant transfer. The fantasy of flipping discounted copper is broken at every step.

Section 4: What Real Buyers Do

  • Negotiate directly with refiners or known suppliers.
  • Issue a draft SPA with clear terms: tonnage, Incoterm, brand, pricing basis.
  • Open a confirmed, operative documentary LC with a top-tier bank.
  • Agree to inspection, load-out terms, and port logistics in writing.
  • Accept that LME + Premium is the real market—and fund it accordingly.

These buyers don’t ask for unicorn discounts. They don’t hide behind chains of brokers. They know that credibility starts with contract structure and ends with payment risk.

FG Capital’s Position

We don’t waste time chasing fantasies. We don’t ask for proof of funds from fake buyers. We discard these inquiries the moment we see the terms. Because they’re not just unserious—they’re mathematically impossible.

If you’re serious about copper procurement, we’ll support the financing—provided the terms are bankable, and the buyer is real.

Our Structured Finance Offering

  • We arrange pre-shipment funding backed by confirmed DLCs.
  • We coordinate with refiners, warehouse providers, and insurers.
  • We secure capacity of up to 3,500 MT/year per counterparty.
  • All financing is subject to independent verification and security checks.

This is for real buyers with real payment instruments—not for speculation.

Next Step

To discuss structured trade finance for physical copper deals, schedule a consultation with FG Capital Advisors. If you're holding a serious contract and working with verified parties, we’ll help move it forward.

This material is provided for information only. It is not a solicitation to trade, nor an offer to arrange financing without due diligence. We do not engage with third-party mandates who lack contractual authority or end-user visibility.