PRICING NOTICE: Proposal to further increase the pricing frequency for cobalt hydroxide index

Fastmarkets proposes to further increase the pricing frequency for its cobalt hydroxide index, min 30% Co, cif China to weekly.

The cobalt hydroxide index, min 30% Co, cif China is currently published on the last working day of each month. Since July 6, Fastmarkets has been consulting on a proposed increase in the pricing frequency to fortnightly, from August 7.
After the initial amendment was proposed in early July, increased spot activity for fixed-price deals has been seen amid persistent spot supply constraints of cobalt hydroxide as a direct result of logistics disruptions, resulting in more demand for prompt cargoes, including cargoes in bonded warehouses in China and those to be delivered in China shortly. And business for such cargoes is traditionally concluded at fixed prices.
In addition, the uncertain price outlook for benchmark standard-grade cobalt, in-whs Rotterdam prices, against which payables are settled, amid strong momentum of Chinese domestic metal prices have boosted stronger appetites among consumers to secure seaborne units in fixed prices so as to cut exposure to unknown metal prices and mitigate risk.
Therefore, Fastmarkets is proposing to further increase the pricing frequency of cobalt hydroxide to weekly in order to monitor the fixed price spot activities more timely.
The base specifications for the cobalt hydroxide index are as follows with proposed new pricing frequency marked in italics. The publication timing is also proposed to be brought forward to between 2pm and 3pm, aligned with the deadline for other minor metals, ores and alloys prices published from London on Fridays.
MB-CO-0020: Cobalt hydroxide index 30% Co min, cif China, $/Ib
Quality: Units produced from large-scale mining activity, with the following chemical composition: Co 30% min, Mn 6.5% max, Mg 6.5% max, S 5% max; Cd 100ppm max; limited concentration of natural radioactivity: GB20664-2006 (suitable for customs clearance into China).
Quantity: Min 50 tonnes (cobalt content)
Location: cif China (other terms normalized)
Timing: 45 days
Unit: $/lb
Payment terms: Letter of credit at sight, current price month (‘M’)
Publication time: 3pm London time, Friday, weekly
Note: Where pricing day falls on a public holiday in England and Wales, the index will be published on the closest working day preceding that date.
The consultation period for this proposed amendment starts from Monday August 3 and will end in 30 days on September 2.
The earlier consultation to increase the frequency of publication to fortnightly still stands and runs until August 5. Subject to positive feedback to both this and the earlier consultation, the publication schedule for the cobalt hydroxide index, min 30% Co, cif China, will be as follows:
August 7
August 21
September 4
September 11, and so on, published weekly on Fridays .
All historical data relating to the assessment prior to the amendment will remain available in the pricing section of the Fastmarkets website.
To provide feedback on the cobalt hydroxide price assessments, or if you would like to provide price information by becoming a data submitter, please contact Charlotte Radford and Susan Zou by email at: pricing@fastmarkets.com. Please add the subject heading ‘FAO: Charlotte Radford/Susan Zou re: cobalt hydroxide price assessments.’
To see all Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.

Charlotte Radford

charlotte.radford@fastmarkets.com

Susan Zou

susan.zou@metalbulletinasia.com

Published

Charlotte Radford

Susan Zou

August 03, 2020

04:13 GMT

Shanghai