Fastmarkets clarifies cobalt brand optionality, data submission

Optionality on brand nominations
Fastmarkets wishes to clarify that the cobalt price and assessment methodology reflect sellers’ optionality to select a brand when offering based on Fastmarkets’ full brand lists.

Reported data that has buyers’ optionality to select brand or reported data that restricts brands included in the Fastmarkets methodology or omits information about brands may be considered for normalization or excluded.

Fastmarkets considers data that requires normalization to have lower conformance with the Fastmarkets specification than data that meets it outright and therefore treats normalized data as lower priority during price assessment.

Fastmarkets reiterates that its cobalt metal price assessment is a single reflection of all the brands stated in the methodology.

Please note, Fastmarkets continuously welcomes market feedback on its methodologies, including the cobalt brand list.

Timely, transparent data submission
Fastmarkets encourages data submitters to provide all available spot data in a timely manner during the pricing sessions to allow for sufficient time to consider the reported data and accompanying evidence in the assessment process.

Fastmarkets reminds market participants that the confidence level, or trustworthiness, of a data point is based on the transparency of the activity, whether or not it was reported by a party directly involved, as well as the completeness of the data and supporting evidence provided by the data submitter. Therefore, confirmed trades and competitive bids or offers are typically treated as higher priority than indications of value.

Fastmarkets may ask for counterparty names related to trade, bid or offer data submitted, other information about specification or delivery window, or proof that a bid or offer has been submitted to other market participants.

Fastmarkets price assessments reflect the open and competitive spot market, which means reporters must be confident that reported activity is not, for example, being conducted between affiliated counterparties in a non-arm’s-length manner or as a transaction that is part of a long-term agreement.

Trades, bids and offers are considered more open and competitive if submitted to a wider cross-section of the market than a restricted pool of counterparties. Where this is not possible, independent corroboration of the acceptance of the price level by other market participants’ data may support the reporters’ confidence level in the submitted data.

Evidence to support submitted data, such as contracts, purchase orders and correspondence records, raises the reporters’ confidence in the data. Inconsistencies in the submitted documentation or inability to provide documentation will lower the confidence the reporters have in it.

Fastmarkets treats accompanying evidence – like all input data – confidentially, with respect to the anonymity of the counterparties involved.

Untimely data submission, selective reporting of spot data, and a lack of, or inconsistent, accompanying evidence may decrease the confidence in the data submitted by a market participant.

Trade performance
Fastmarkets also wishes to inform market participants that it may periodically undertake reviews of reported trades to confirm their completion. This may be done through requesting proof of execution, such as confirmation of delivery, warehouse release, or bill of lading.

A lack of cooperation during a trade performance review, may decrease the confidence in the subsequent data submitted by a market participant.

Again, Fastmarkets will always respect the confidentiality and anonymity of the counterparties involved as well as any other data or information.

To provide feedback on the above clarification notice for MB-CO-0005 cobalt, standard grade, in-whs Rotterdam, and MB-CO-0004 cobalt, alloy grade, in-whs Rotterdam, or if you would like to provide price information by becoming a data submitter to these prices, please contact pricing@fastmarkets.com and temlondon@fastmarkets.com. Please add the subject heading “re: Cobalt clarification.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets pricing methodology and specification documents, please go to the Fastmarkets methodology page.