Having originally invited feedback from the industry on the pricing methodology for low-carbon ferro-chrome in Europe via an open consultation process between November 28, 2022, and January 9, 2023, the consultation was then extended until February 6, 2023.
After the end of the extended consultation, feedback from market participants indicated there was sufficient support for the introduction of a new price assessment for low-carbon ferro-chrome with lower chrome content – with the methodology unchanged apart from adjusting it to ferro-chrome with 0.1% carbon content and chrome content of less than 65% rather than 0.1% carbon and 65-70% chrome content. The price assessment was introduced on a trial basis for a period of eight weeks to allow time for more feedback.
After the trial period, which ended on Tuesday April 25, Fastmarkets proposed amending the chrome content to 60-64.9%, following market feedback that this would be more representative of the majority of reported liquidity than the originally proposed chrome content of 58-64.9%.
All other elements of the specification remain the same as in the original proposal.
During the consultation on the amended proposal, which began Wednesday April 26 and ended on Wednesday May 24, there were no formal responses, and no objections to the proposal.
Based on the earlier feedback and data gathered during the trial period, Fastmarkets has, therefore, decided that the proposed adjustment be made and the new price launched, as set out below:
Ferro-chrome low carbon, 0.10% C, basis 60-64.9% Cr, CIF Europe, $ per lb Cr
Quality: Lump, Cr 60-64.9%, C 0.10%, Si 1.5% max, P 0.03% max, S 0.03% max
Quantity: Min 25 tonnes
Location: CIF Europe
Unit: USD per lb of chrome contained
Payment terms: 30 days, other payment terms normalized
Publication: Fortnightly, Tuesday, 2-3pm London time.
Fastmarkets will adjust the methodology accordingly and will begin publishing the price assessment using the new specification from Tuesday June 6 and every fortnight thereafter.
To provide feedback on the decision to launch the new low-carbon ferro-chrome price, please contact Claire Patel-Campbell by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Claire Patel-Campbell, re: low carbon ferro-chrome.”
To see all Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.
