Fastmarkets proposes changes to the name and specifications of its UG2 chrome ore price index.
Fastmarkets proposes to change the specification for its
chrome ore South Africa UG2 concentrates index basis 42%, cif China to include MG material and to amend some qualities, including to clarify a base chrome iron ratio and to implement a normalization process to meet this base level.
Fastmarkets also proposes changing the publication time.
The proposed specifications would be (proposed changes in bold):
MB-CHO-0003: Chrome ore South Africa UG2/MG concentrates index, cif China, $/tonne
Quality: Up to 2mm (99% min); Cr range 40-42%; Silica max 6%; Alumina max 18%; MgO max 16%; P max 0.01%; S max 0.01%; chrome iron ratio 1.27:1-1.35, basis 1.27:1
Quantity: Min 2,000 tonnes
Location: cif Tianjin and Qinzhou, China (normalized for any Chinese mainland sea port)
Unit: USD per tonne
Payment terms: Payment at sight
Publication: Weekly. Tuesday, 2-3pm London time
Notes: Bulk (container deals normalized)
The current specifications are as follows (proposed items to change in bold):
MB-CHO-0003: Chrome ore South Africa UG2 concentrates index basis 42%, cif China, $/tonne
Quality: Up to 1mm (95% min); Cr base 42%, range 40-43%; Silica max 6%; Alumina max 18%; MgO max 15%; P max 0.01%; S max 0.01%; chrome iron ratio 1.2:1 min
Quantity: Min 2,000 tonnes
Location: cif China
Unit: USD per tonne
Payment terms: Payment at sight
Publication: Weekly. Tuesday, 3pm London time
Notes: Bulk (container deals normalized)
Informal market consultation suggests these changes would better reflect the composition of the material being traded.
Normalization of prices according to chrome iron ratios would be applied to bring higher ratios premiums down to the basis level. The normalization would be updated at the beginning of each calendar quarter only, and the average premiums/discounts observed in the previous three months of data will be used.
The changing of the publication time would bring this assessment in line with most other metals, ores and alloys assessments.
The consultation period for this proposed amendment will end one month from the date of this pricing notice, on September 27, with changes taking place, subject to market feedback, from November 2.
To provide feedback on these indices or if you would like to provide price information by becoming a data submitter to these indices, please contact Jon Stibbs or Siyi Liu by email at pricing@fastmarkets.com.
Please add the subject heading "FAO: Jon Stibbs, Siyi Liu re: amendment to UG2 index."
To see all Fastmarkets' pricing methodology and specification documents go to
www.fastmarkets.com/about-us/methodology.