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An initial consultation with the market, which ended on August 9, has indicated some support and some concerns regarding the launch of a fot index.
Metal Bulletin is now extending the deadline for contribution to the consultation.
This notice marks the start of a two week period during which Metal Bulletin will seek any extra feedback on the points outlined in this notice from any person active in any part of the manganese ore market supply chain.
It is not intended to review or discontinue the specification of the existing manganese ore indices, calculated by Metal Bulletin each Friday, as part of this consultation. But, if this new price launch goes ahead, the existing two manganese ore indices would formally exclude any fot data points from its calculation. This does not affect the existing manganese ore indices because fot data has typically been excluded in recent months due to a disconnect between prices within the standard spec and fot prices.
Tight supplies of manganese ore at Chinese ports and inherently different market fundamentals from the seaborne market have meant big differences between fot and cif prices, facilitating the creation of an as-yet uncaptured spot market for fot China.
The intentions of this consultation are fourfold: 1. To evaluate the possibility of launching a fot index 2. To assess the feasibility of providing additional price transparency and reliable data to the fot market 3. To research and refine specifications, through regular data collection and conversations with those active in the spot market 4. To identify and develop the most appropriate methodical approach for price discovery in this market.
It is intended that Metal Bulletin’s index methodology, using a tonnage-weighted calculation of actual spot transactions normalised to a base specification, will be adopted.
All information contributed to Metal Bulletin during the consultation and trial period will be kept secure and confidential.
Timeframe The price consultation outlined above will last two weeks, closing on August 25, 2017. The new consultation adds two further weeks on to a two month consultation that has been running since June.
Following the market consultation, a conclusion, including the details of any new prices to be launched by Metal Bulletin, will be announced on the following week.
To discuss the consultation and points outlined above in further detail, to organise a meeting or if you would like to provide price information by becoming a data submitter to this price, please contact Fleur Ritzema by email at: pricing@metalbulletin.com. Please add the subject heading FAO: Fleur Ritzema, re: Manganese ore fot China weekly price.
To see all Metal Bulletin’s pricing methodology and specification documents go to https://www.metalbulletin.com/prices/pricing-methodology.html