PRICING NOTICE: Proposal to discontinue China ferro-tungsten fob China price

Fastmarkets proposes to discontinue weekly assessments of its ferro-tungsten basis 75% W fob China price.

Fastmarkets’ assessments of the Chinese ferro-tungsten price are based on material that uses tungsten ores and concentrates as a feedstock. But a rising proportion of exported material is produced from scrap, Fastmarkets has noted.

In the past year, due to the availability of and competition from off-grade material, the liquidity of standard grade ferro-tungsten exported from China has dwindled in the spot market.

A single producer in China is the main supplier of this off-grade material, Fastmarkets understands.

As well, Chinese suppliers that produce and export standard-grade ferro-tungsten have switched their priority to the production of other, higher-margin materials rather than ferro-tungsten, market observers have told Fastmarkets.

Lower production of standard-grade ferro-tungsten has exacerbated the stagnant conditions of the Chinese export market for ferro-tungsten, the specifications of which are in line with Fastmarkets’ methodology for the assessment for this material.

The specifications for the price assessment are as follows:

Ferro-tungsten basis 75% W fob China

  • Quality: W: 75.00% min. C: 0.40% max. S: 0.08% max. Mn: 0.50% max. As: 0.10% max. Sn: 0.08% max. P: 0.05% max. Si: 0.70% max. Cu: 0.15% max. Sb: 0.05% max. 
  • Quantity: 5 tonnes 
  • Location: FOB China main port 
  • Unit: USD per kg W 
  • Form: Lump 
  • Payment terms: Cash, other terms normalised 
  • Publication: Weekly. Wednesday 2-3pm London 
Fastmarkets now invites market participants to take part in a consultation on the proposed discontinuation of this price. The consultation period will end one month from the date of this pricing notice on March 26, with changes taking place from March 26, subject to market feedback.

To provide feedback on this proposal, please contact Huaqing Fu by email at pricing@fastmarkets.com. Please add the subject heading “FAO: Huaqing Fu, re: China ferro-tungsten export price”.

As background, Fastmarkets previously discontinued its fob China ferro-tungsten price assessments in September 2013 due to a lack of activity in the market.

A pick-up in liquidity after China removed a 20% export tax in May 2015 prompted Fastmarkets to relaunch the price in March 2016.

To see all Fastmarkets pricing methodology and specification documents go to https://www.metalbulletin.com/prices/pricing-methodology.html.

Huaqing Fu

huaqing.fu@fastmarkets.com

Published

Huaqing Fu

February 26, 2019

13:15 GMT

Shanghai