Decision to suspend amendment of cobalt standard grade, in-whs Rotterdam price

After an initial one-and-a-half-month consultation, followed by a further three-month consultation period on the proposed inclusion of a powder brand, and following market feedback and data analysis, Fastmarkets has determined that current market circumstances do not make the proposed amendment to the cobalt standard grade, in-whs Rotterdam, daily price assessment viable.

This decision is not a judgement on the quality of any brand. Fastmarkets’ standard-grade cobalt assessment refers to a selection of named brands in the specification, that have been grouped based on them historically trading to similar dynamics, typically driven by chemical and melting applications.

An historic degree of correlation and market support needs to be confirmed for Fastmarkets to formally include new brands within its specification.

Fastmarkets noted low levels of market activity for the Umicore S1 powder brand during the consultation period and therefore we are unable to conduct adequate data analysis for the brand.

Feedback from the consultation suggested that the spot fundamentals of the cobalt powder market were different to the cobalt metal material cited in the current assessment specifications.

Fastmarkets continues to seek further liquidity data on powder brands and other metal brands not listed in the cobalt metal assessment specifications, to help inform future data analysis.

Cobalt brands and the price assessment grades under which they are designated are under regular review by Fastmarkets.

Fastmarkets reviews all pricing data carefully to ensure that its price assessments reflect the open and competitive market level.

Fastmarkets reserves the right to commence market consultations on the cobalt metal assessment specifications in the future, should circumstances change.

To provide feedback on this decision not to amend the MB-CO-0005 cobalt standard grade price assessment, please contact Alex Cook by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Alex Cook, re: Cobalt standard grade.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

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