The extension will enable Metal Bulletin to respond to feedback received so far, and further consult with others in the market in light of this feedback.

Metal Bulletin will then launch its cif Europe tungsten concentrates index on Friday January 26.

The intention is to launch a tungsten concentrates index as a result of feedback received during last year’s wider consultation on tungsten pricing.

Metal Bulletin will engage its index methodology to take account of the wide variation in tungsten concentrates sold in the spot market. Different grades of tungsten concentrates will be normalised to a base specification, and a tonnage weighted average will be used to generate a single-figure reference price.

Metal Bulletin’s index methodology screens outliers and applies a quantity weighted model to ensure that its tungsten concentrates index will be the most robust in the industry.

Weighting is given to concluded trades, in preference to bids, offers, deals reported second hand, and assessments.

This approach has been applied with success to a number of complex markets in recent years, including copper concentrates, manganese ore and iron ore.

Metal Bulletin has no financial interest in the level or direction of the index.

The following base specifications for the tungsten concentrates index have been devised in consultation with those active in the spot market.

Tungsten concentrates index, cif Europe
Units: $/mtu
Base chemical specification: WO3: 65% min; Sn: 5% max; Fe: 3% max; SiO2: 3% max; S: 1.5% max; Pb: 1% max; Mo: 0.2% max; As: 0.15% max; Sb: 0.01% max; Cd: 0.005% max; Be: 200ppm max; U: 100ppm max; Th: 100pm max (other grades normalised)
Delivery: cif Rotterdam (other ports normalised)
Trade size: minimum 18 tonnes
Loading window: Loading within one month
Payment terms: Cash against documents
Publication: weekly on Fridays, between 2pm and 3pm London time

This is a base specification against which other grades of tungsten concentrates will be normalized using historic data.

It is understood that these specifications reflect the most common starting point for negotiations for spot purchases, and would be of greatest utility to those engaged in the spot market.

Metal Bulletin is seeking feedback on the base specifications outlined above and may further refine the specification before the launch of the index in January.

The final specifications will be published in a pricing notice on Tuesday January 23.

To provide feedback on this index or if you would like to provide price information by becoming a data submitter to this index, please contact Charlotte Radford by email at: pricing@metalbulletin.com. Please add the subject heading FAO: Charlotte Radford, Tungsten Concentrates Index.

To see all Metal Bulletin’s pricing methodology and specification documents, please go to https://www.metalbulletin.com/prices/pricing-methodology.html.