COVERAGE NOTE: Fastmarkets moves to annual methodology reviews across PRA divisions
Fastmarkets will from this year, 2020, review its pricing methodologies and price specifications across all its Price Reporting Agency (PRA) divisions - metals and mining and forest products - on an annual basis rather than twice per year.
The decision is in line with the International Organization of Securities Commissions (IOSCO) principles for PRAs, which sets out global standards for orderly and fair price assessment processes, and with practices followed by other commodity PRAs. The move also reflects the longevity of our pricing methodologies, which have been designed to fit specific markets over the long term without needing constant adjustments.
Fastmarkets will inform the industry and invite feedback via a pricing notice before annual methodology reviews take place to ensure our methodologies continue to reflect the physical market under assessment.
The annual review will cover the assessment and index methodologies as well as individual price specifications. Proposals to make material changes and discontinue or launch prices will involve a market consultation, the length of which will depend on how substantial the change is for the industry.
Fastmarkets will continue to propose changes to methodologies and prices on an ad-hoc basis as and when necessary, and will carry out a market consultation if the suggested change is material.
To see Fastmarkets RISI and Fastmarkets FOEX pricing methodologies and specification documents go to https://www.risiinfo.com/approach/methodology/price-assessment-methodology/ or https://www.foex.fi/index.php?page=pix-methodologies-policies.
Random Lengths will continue to conduct twice-yearly Price Guide Revisions in April and October for the time being.
To provide feedback on this notice, please contact Alex Harrison for metals and mining prices at firstname.lastname@example.org or Matt Graves for forest products at email@example.com. Please add the subject heading ‘FAO: Alex Harrison/Matt Graves re: annual methodology reviews’