PRICING NOTICE: Extension of low-carbon ferro-chrome Europe consultation to enable further market feedback

Following extensive market engagement, Metal Bulletin has decided to extend the consultation period for the proposal to split Metal Bulletin’s 0.10% C low-carbon ferro-chrome Europe price specification to provide additional time for feedback.

At present, Metal Bulletin includes all price points for low-carbon ferro-chrome with a carbon and chromium content of 0.10% and 60-70% chrome respectively into the existing low-carbon ferro-chrome (0.10% C avg 60-64.9% Cr) delivered consumer works Europe $ per lb Cr price.

Metal Bulletin is proposing to split the existing price into lower and higher chromium content products, specifically 60-64.9% and 65-70% and initially invited feedback in a pricing notice on July 5.

Metal Bulletin is seeking more market feedback on this proposal owing to the divergence in the high and low ends of the market that has been identified through internal analysis.

Research of the underlying data has indicated the potential need for two individual market prices capturing the value of different grades.

From September 2017 to June 2018, the average spread in the high and low end of the price range was $0.14 per lb. Over the 10 months upto September 2017, the spread had averaged $0.09 per lb.

Participants active in the market are invited to provide feedback on whether 0.10% carbon ferro-chrome should be viewed as separate products according to its chromium content and whether Metal Bulletin should provide two separate prices. Metal Bulletin also seeks market feedback on whether there is sufficient liquidity in the individual specifications, particularly for lower chromium content low-carbon ferro-chrome.

Subject to the results of the consultation, the existing price will be discontinued and two new prices will be launched to capture the diverging market fundamentals. The price history for the existing product will be applied to both new products.

There will be no changes to the publishing time and dates of the proposed assessments.

The full specifications for the proposed new 0.10% C low-carbon ferro-chrome prices, are as follows:

Description: Low-carbon ferro-chrome (0.10% C avg 60-64.9% Cr) delivered consumer works Europe $/lb Cr
Type: Assessed range
Basis: Delivered consumer works Europe
Currency: USD
Unit: lb of chrome contained
Min lot size: 25 tonnes
Payment terms: 30 days, other payment terms normalized
Quality: Cr: 65% basis (range 60-64.9% Cr); C: 0.10% excluding material up to 0.06% C; Si: 1.5% max; P: 0.05% max; S: 0.05% max
Form: Lump
Publication: Fortnightly. Friday between 2pm and 3pm London time

Description: Low-carbon ferro-chrome (0.10% C avg 65-70% Cr) Delivered consumer works Europe $/lb Cr
Type: Assessed range
Basis: Delivered consumer works Europe
Currency: USD
Unit: lb of chrome contained
Min lot size: 25 tonnes
Payment terms: 30 days, other payment terms normalized
Quality: Cr: 65% basis (range 65-70% Cr); C: 0.10% excluding material up to 0.06% C; Si: 1.5% max; P: 0.05% max; S: 0.05% max
Form: Lump
Publication: Fortnightly. Friday between 2pm and 3pm London time

The extended consultation period for this proposed amendment will end one month from the date of this pricing notice, on Monday September 3, with changes taking place from Friday September 7, subject to market feedback.

To provide feedback on this price or if you would like to provide price information by becoming a data submitter to this price, please contact Jon Stibbs by email at: pricing@metalbulletin.com. Please add the subject heading “FAO: Jon Stibbs, re: Low-carbon ferro-chrome (0.10%)”.

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

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