Fastmarkets proposes to update the normalization of its manganese ore price data - for manganese ore 37% Mn, fob Port Elizabeth, $/dmtu; manganese ore 37% Mn, cif Tianjin, $/dmtu; and manganese ore 44% Mn, cif Tianjin, $/dmtu - on a monthly rather than a quarterly basis.

The normalization coefficients for the manganese ore indices are updated to reflect the constantly changing value-in-use relationship of different products and grades. As well as reflecting the level of data liquidity and volatility in the market, this also balances the requirement to keep the value-in-use calculations reflective of the market while also providing a statistically robust data set for analysis.

Fastmarkets proposes to update its coefficients on a monthly basis rather than quarterly because the correlation between brands has recently been changing at a faster pace.

As well, Fastmarkets proposes to make a minor change to the specifications of its three seaborne manganese ore indices. Fastmarkets proposes to amend the payment terms for these to "Cash or LC on sight" from “Cash or equivalent” currently.

The current specifications are as follows:

Index: Manganese ore 37% Mn, cif Tianjin, $/dmtu
Unit: US$ per dry metric tonne unit, cif Tianjin, China
Content
Manganese: Base 37%, Range 35-39%
Iron content: Base 5%, Maximum 10%
Silica content: Base 5.5%, Maximum 12%
Phosphorous: Base 0.025%, Maximum 0.16%
Alumina: Base 0.2%, Maximum 2%
Moisture: Base 4%, Maximum 12%
Form: Lump
Delivery: Tianjin (China) - normalized for any Chinese mainland sea port
Granularity: 5.5-75mm
Quantity: Min 5,000 tonnes
Delivery window: Within nine weeks
Payment: Cash or equivalent
Publication: Friday, 3pm London

Index: Manganese ore 37% Mn, fob Port Elizabeth, $/dmtu
Unit: US$ per dry metric tonne unit, fob Port Elizabeth, South Africa
Content
Manganese Base 37%, Range 35-39%
Iron: Base 5%, Maximum 10%
Silica: Base 5.5%, Maximum 12%
Phosphorous: Base 0.025%, Maximum 0.16%
Alumina: Base 0.2%, Maximum 2%
Moisture: Base 4%, Maximum 12%
Form: Lump
Delivery: Port Elizabeth (South Africa)
Granularity: 5.5-75mm
Quantity: 5,000 tonnes
Delivery window: Within nine weeks
Payment: Cash or equivalent
Publication: Friday, 3pm London

Index: Manganese ore 44% Mn, cif Tianjin, $/dmtu
Unit: US$ per dry metric tonne unit, cif Tianjin, China
Content
Manganese: Base 44%, Range 42-48%
Iron: Base 5%, Maximum 16%
Silica: Base 11%, Maximum 12%
Phosphorous: Base 0.10%, Maximum 0.16%
Alumina: Base 5%, Maximum 14%
Moisture: Base 4%, Maximum 12%
Form: Lump
Delivery: Tianjin (China) - normalized for any Chinese mainland sea port
Granularity: 5.5-75mm
Quantity: Min 5,000 tonnes
Delivery window: Within nine weeks
Payment: Cash or equivalent
Publication: Friday, 3pm London

The amendment to the payment terms for these indices will better reflect how the manganese market operates, Fastmarkets believes. A formal consultation for this change was extended to allow interested parties more time to respond - the volume of feedback was subdued over the summer .

The consultation period for these proposed amendments has been extended by a week to December 4 from November 27 - one month and one week from the date of this pricing notice - with changes taking place from December 6. An extra week was added to conduct a more in-depth consultation. 

To provide feedback on these indices or if you would like to provide price information by becoming a data submitter to these indices, please contact Jon Stibbs or Amy Lv by email at pricing@fastmarkets.com. Please add the subject heading 'FAO: Jon Stibbs/Amy Lv, re: Manganese ore.'

To see all Fastmarkets’ pricing methodology and specification documents go to www.fastmarkets.com/about-us/methodology.