The two prices that would be affected by the amendment are: 
MB-CO-0021: Cobalt hydroxide payable indicator, min 30% Co, cif China, % payable of Fastmarkets’ standard-grade cobalt price (low end)  
MB-CO-0020: Cobalt hydroxide index 30% Co min, cif China, $/Ib

The initial consultation, which was scheduled to end on June 30, has shown support for the addition of an iron threshold to the impurity specifications for these prices, but has suggested a higher threshold would be more appropriate.

The extension is to allow time for market feedback on a revised proposal to introduce a maximum iron content of 5%, rather than 3% as suggested before.

Fastmarkets' specifications are intended to be wide enough so as to incorporate as much spot market activity as possible, while also being narrow enough so as to reflect a mainstream, tradable range that reflects changing market trends and captures price moves. Feedback so far suggests a 5% iron threshold would achieve this objective.

The proposed amended specifications are as follows, with the revised changes highlighted in italics:

MB-CO-0021: Cobalt hydroxide payable indicator, min 30% Co, cif China, % payable of Fastmarkets’ standard-grade cobalt price (low end)
Quality: Units produced from large-scale mining activity, with the following chemical composition: Co 30% min, Mn 6.5% max, Mg 6.5% max, S 5% max; Cd 100ppm max; Fe: 5% max; limited concentration of natural radioactivity: GB20664-2006 (suitable for customs clearance into China).
Quantity: Min 50 tonnes (cobalt content)
Location: cif China (other terms normalized)
Timing: 45 days
Unit: % payable of Fastmarkets’ standard-grade cobalt price (low end, $ per lb)
Payment terms: Letter of credit at sight, current and following price month (‘M’ and ‘M+1’)
Publication: Twice weekly, Wednesday and Friday, 3pm London time
Notes: Where the publication day falls on a public holiday in England and Wales, the assessment will be rolled over from previous pricing session.

MB-CO-0020: Cobalt hydroxide index 30% Co min, cif China, $/Ib
Quality: Units produced from large-scale mining activity, with the following chemical composition: Co 30% min, Mn 6.5% max, Mg 6.5% max, S 5% max; Cd 100ppm max; Fe: 5% max; limited concentration of natural radioactivity: GB20664-2006 (suitable for customs clearance into China).
Quantity: Min 50 tonnes (cobalt content)
Location: cif China (other terms normalized)
Timing: 45 days
Unit: $/lb
Payment terms: Letter of credit at sight, current price month (‘M’)
Publication time: 5pm London time, last working day of the month.

The consultation period for this proposed amendment starts on June 30 and will end on July 30. The amendment will take effect, subject to market feedback, on August 5.

All historical data relating to the assessment prior to the amendment will remain available in the pricing section of the Fastmarkets website.

To provide feedback on the cobalt hydroxide price assessments, or if you would like to provide price information by becoming a data submitter, please contact Charlotte Radford and Susan Zou by email at: pricing@fastmarkets.com. Please add the subject heading ‘FAO: Charlotte Radford/Susan Zou re: cobalt hydroxide price assessments.’

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