Based on research and consultancy with market participants, Fastmarkets MB has concluded that there are differences in delivery costs due to the distance between refineries or warehouses (where cargoes are stored) and their destinations, which may in turn exacerbate fluctuations in the weekly price assessment.
Such fluctuations may lead to misunderstandings among market participants about the market’s direction.
As well, by pricing on an in-warehouse basis, market participants are able to have a clearer idea of the market reality without having to take other factors, such as logistics fees, into consideration.
The full specification with new price basis (in bold) is as below:
Assessment: Silico-manganese min 65% Mn max 17% Si, in-warehouse duty paid China yuan/tonne
Dimensions: lump, Mn: 65-72%; Si: 17%; C: 1.8% max; P: 0.25% max; S: 0.04% max
Quantity: 100 tonnes
Location: in-warehouse China duty paid
Unit: yuan/tonne, all Mn grades normalized to 65% basis on pro rata basis
Payment terms: cash, other terms normalized
Publication: weekly, Friday between 2pm and 3pm London time
All historical data relating to this price prior to the amendment will remain available in the pricing section of the Fastmarkets MB website.
To provide feedback on the amendment to the Chinese silico-manganese price specifications or if you would like to provide price information by becoming a data submitter to this price, please contact Karen Ng by email at: firstname.lastname@example.org
. Please add the subject heading FAO: Karen Ng, re: Chinese silico-manganese price.
To see all Fastmarkets’ pricing methodology and specification documents go to https://www.metalbulletin.com/prices/pricing-methodology.html