The adjustment, effective Wednesday April 24, was made based on both market feedback and the internal data analysis during the consultation period.
The goal of a minimum tonnage is to exclude any deal that, because of its small size or high price, could add bias to the Fastmarkets published price. At the same time, the minimum tonnage must be as low as possible so that the number of deals excluded is the smallest.
Initial consultations with market participants revealed that with the current minimum tonnage, a small number of transaction and non-transaction data is collected and assessed, but participants said the trade and non-trade data is not representative of the mainstream market.
In addition, some of the small-tonnage transactions were concluded at much higher prices, which may distort actual spot market levels, according to initial feedback.
On February 25, Fastmarkets proposed to increase the minimum tonnage of its domestic Chinese indium price assessment to 50 kilograms. Following initial feedback from market participants, Fastmarkets extended the consultation period to allow for more feedback to ensure that the final amendment reflects market dynamics.
The indium specifications are laid out below, with amendments in bold.
Assessment: Indium, 99.99% ex-works China
Dimensions/quality: 500g ingot: In 99.995% min; Cu 0.0005% max; Pb 0.0005% max; Zn 0.0005% max; Cd 0.0005% max; Fe 0.0005% max; Ti 0.0005% max; Sn 0.0010% max; As 0.0005% max; Al 0.0005% max
Quantity: Min 100kg
Location: Ex-works China
Unit: Yuan per kg
Payment terms: Cash on spot
Publication: Weekly, Wednesday, 2-3pm London time
To provide feedback on this assessment or if you would like to provide price information by becoming a data submitter, please contact Amy Lv by email at firstname.lastname@example.org. Please add the subject heading 'FAO: Amy Lv, re: min lot size for China’s spot indium price'.
To see all Fastmarkets' pricing methodology and specification documents, please go to https://www.metalbulletin.com/prices/pricing-methodology.html
Fastmarkets has amended the minimum tonnage of its Chinese domestic indium price assessment to 100 kilograms to better reflect the dynamics of the market.