PRICING NOTICE: Consultation on overlapping Metal Bulletin and FastMarkets premiums

Following the completion of Metal Bulletin’s acquisition of FastMarkets on Friday September 2, and in line with requests from the two companies’ mutual customers among the world’s major mining companies, metal consumers and trading houses, Metal Bulletin outlines how the integrated metal pricing team, comprising staff from both companies, intends to handle its pricing of some base metal premiums in the future.

The most urgent issue from the point of view of those that use prices assessed by Metal Bulletin and FastMarkets are premiums for the same metal in the same location that both Metal Bulletin (including sister publication American Metal Market) and FastMarkets produced, or overlapping premiums. (See list below.)

This early notification of our intentions is intended to facilitate the understanding of those companies that use premiums from both companies in their contracts, in order that contracts for Q4 2016 and calendar years 2016 and 2017 are not unduly affected by the rationalisation of the overlapping premiums that Metal Bulletin and FastMarkets hitherto produced as separate companies.

This notice is part of a consultation process, and dates and plans are subject to the comments and questions of those that use the premiums that were produced by Metal Bulletin and FastMarkets individually.

Metal Bulletin plans to continue assessing overlapping FastMarkets and Metal Bulletin premiums in parallel till the end of calendar year 2016.

Over that time, they will be assessed, reviewed and approved by specific individuals from the formerly separate teams under the Metal Bulletin and FastMarkets methodologies.

From the first pricing session of January 2017 onwards, however, Metal Bulletin will cease publishing FastMarkets premiums that overlap with Metal Bulletin premiums.

From that point on, all premiums will be assessed in line with the Metal Bulletin methodology.

The review process started on September 30 and will continue till October 31, which is the deadline for submitting comments to Metal Bulletin.

Metal Bulletin will publish the results of this review in November, and then intends to publish a delisting notice for all the overlapping FastMarkets premiums that we will cease to publish from January.

Metal Bulletin has identified the following prices as overlapping premiums.

Aluminium
Singapore in-warehouse
South Korea cif
Johor in-warehouse
Rotterdam DUP in-warehouse
Rotterdam DP in-warehouse
Japan spot MJP
Japan quarterly MJP
Shanghai cif
US Midwest delivered

Copper
Singapore in-warehouse
South Korea cif
Johor in-warehouse
Rotterdam in-warehouse
Italy cif
Shanghai cif
Shanghai bonded
US Midwest delivered

Lead
Johor 99.97% in-warehouse
Rotterdam 99.97% in-warehouse
Rotterdam 99.985% in-warehouse (FM prices as 99.99%)
US 99.97% delivered MW

Nickel
Singapore FP in-warehouse
Singapore briquettes in-warehouse
Johor FP in-warehouse
Johor briquettes in-warehouse
Rotterdam full-plate in-warehouse
Rotterdam briquettes in-warehouse
Rotterdam cut cathode in-warehouse
Shanghai full-plate bonded
US melting grade (delivered)
US plating grade (delivered)

Zinc
Singapore in-warehouse (MB 99.995%, FM high lead/low lead)
Johor in-warehouse (MB 99.995%, FM high lead/low lead)
Rotterdam in-warehouse
Rotterdam DP FCA
Shanghai bonded
US MW delivered

Tin
Rotterdam 99.85% in-warehouse
Rotterdam 99.9% in-warehouse (FM differentiates standard 3 nines and low-lead)
Tin Grade A 99.85% premium delivered USA

To take part in the consultation, please email your comments to pricing@metalbulletin.com.

Find out more about Metal Bulletin’s acquisition of FastMarkets here.

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