Extension of consultation period on proposed changes to low-carbon FeCr pricing in Europe

After market feedback, Fastmarkets is extending the consultation period on the proposed changes to its pricing methodology for low-carbon ferro-chrome in Europe.

The consultation, which was originally open until January 9, seeks to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications and publication frequency.

You can find the current methodology for European low-carbon ferro-chrome pricing at https://www.fastmarkets.com/methodology.

Specifically, Fastmarkets is seeking further feedback on:
• The possible introduction of a new price covering low-carbon ferro-chrome with lower chrome content
• Adjusting the specification of its fortnightly ferro-chrome 0.10% C, average 65-70% Cr, delivered Europe quotation to reflect more commonly requested impurity levels
• Discontinuing the fortnightly quotation for ferro-chrome, low carbon, 65% Cr, max 0.06% C, delivered Europe.

New 0.1% carbon quotation proposal
Fastmarkets is seeking additional feedback on its proposed introduction of an assessed price range for ferro-chrome with 0.1% carbon content and chrome content of less than 65%, otherwise using the same methodology as the existing quotation.

The suggested specification and other terms are:

Ferro-chrome low carbon, 0.10% C, basis 58-64.9% Cr, CIF Europe, $ per lb Cr
Quality: Lump, Cr 58-64.9%, 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 is seeking additional feedback on whether this would be welcome and whether any amendments should be made — for example, incoterms and chrome and/or impurity content in the proposed new low-carbon price.

These specifications continue to be subject to change based on market feedback, including, but not limited to, incoterms, frequency of publication, chrome content and other impurities.

If there is strong enough agreement from market participants on amendments to any of these terms, Fastmarkets will consult the market again as needed.

Proposed changes to impurity levels in existing 0.1% carbon quotation
This proposal suggests keeping most specified impurity levels the same, but reducing the maximum tolerances for sulfur and phosphorus from 0.05% to 0.03%, as highlighted below in italics:

MB-FEC-0003 Ferro-chrome, 0.10% C, average 65-70% Cr, delivered Europe, $ per lb Cr
Quality: Lump, Cr 65% basis (range 65-70% Cr), C 0.10% excluding material up to 0.06% C, Si 1.5% max, P 0.03% max, S 0.03% max
Quantity: Min 25 tonnes
Location: Delivered consumer works Europe
Unit: USD per lb of chrome contained
Payment terms: 30 days, other payment terms normalized
Publication: Fortnightly, Tuesday 2-3pm London time.

Proposed discontinuation of ferro-chrome low carbon, 65% Cr, max 0.06% C, delivered Europe price
Finally, Fastmarkets proposes to discontinue the following price, as of an agreed-upon date after the end of the extended consultation period:

MB-FEC-0002 Ferro-chrome low carbon, 65% Cr, max 0.06% C, delivered Europe, $ per lb Cr
Quality: Lump, Cr 65% basis (range 60-70% Cr), C 0.06% max, Si 1.5% max, P 0.05% max, S 0.05% max
Quantity: Min 25 tonnes
Location: Delivered consumer works Europe
Unit: USD per lb of chrome contained
Payment terms: 30 days, other payment terms normalized
Publication: Fortnightly, Tuesday, between 2pm and 3pm London time.

Extended consultation period
The extended consultation period for these proposed changes starts from Monday January 9 and will end on Monday February 6. Any changes will then take place, subject to market feedback, on an agreed-upon date after the end of the extended period.

Fastmarkets may choose to implement some, all or none of these suggestions. In the event that any amendments and/or additions are needed to these proposals, Fastmarkets will launch a renewed consultation.

In addition, we are open to discussions on other possible changes to our European ferro-chrome prices.

To provide feedback on these proposals or if you would like to provide price information by becoming a data submitter, 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 pricing.’

Please specify whether your response is confidential. Opinions offered in confidential responses may be referenced but will not be attributed in any way.

Fastmarkets will publish the outcome of this extended consultation by February 13, including a summary of the feedback – with the exception of those responses marked as confidential.

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

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