PRICING NOTICE: Amendment of cobalt hydroxide assessment specifications

Following a consultation, Fastmarkets has tightened the chemical specification of the cobalt hydroxide payable indicator, min 30% Co, cif China, % payable of Fastmarkets’ standard-grade cobalt price (low end), and the cobalt hydroxide index 30% Co min, cif China, $/Ib, to specify maximum content of manganese, magnesium, silicon, and cadmium and radioactivity concentration. The eligible minimum content requirement for cobalt is unchanged at 30%.

In addition, the limitation on origin of material has be widened so that all material produced from large-scale mining activity can be considered within the assessments, provided it also means the detailed chemical specification.

Furthermore, the frequency of the cobalt hydroxide payable indicator, cif China, will increase to weekly (on Wednesdays) from October 9, from twice-monthly previously. The frequency of the cobalt hydroxide index, cif China, (monthly), is unchanged.

The specifications for the two cobalt hydroxide price assessments now read as follows:

Assessment: 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; 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, $/lb)
Payment terms: Letter of credit at sight, current and following price month (‘M’ and ‘M+1’)
Publication: Weekly, Wednesday, 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.

Index: Cobalt hydroxide index, min 30% Co, cif China, $ per lb
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; 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.

All historical data relating to the assessment and the index 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.

[Editor’s note: This pricing notice was updated on November 12 to clarify the payment terms for both assessments.]