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Fastmarkets’ minimum lot size for its in-warehouse Rotterdam indium, gallium, germanium metal and germanium dioxide price assessments is rising to 100kg from Friday, October 5, from 50kg currently.
There will be no changes to the publishing time and dates of the assessments.
The consultation was launched after certain market participants expressed concerns that pricing data points relating to small lots are neither representative of typical market practice nor mainstream, repeatable spot prices.
In light of these initial market comments, Fastmarkets had conducted an internal analysis based on the market data collected over the last two years.
Details of internal data analysis can be found in the following pricing notices.
Indium ingots free market $ per kg in-warehouse Gallium metal free market $ per kg Germanium metal Rotterdam $ per kg and germanium dioxide free market $ per kg
The new specifications are as follows:
Description: Indium 99.99% Rotterdam $/kg Type: Assessed range Basis: Rotterdam Currency: USD Unit: kg Min lot size: 100 kg Payment terms: Cash, other payment terms normalized Quality: In: 99.99%, no other elements specified Form: Ingots, usually between 0.5kg and 3.5kg; also 10kg ingots Publication: Twice-weekly. Wednesday and Friday between 2pm and 3pm London time Packaging: Original producers’ wooden cases Delivery timeframe: Prompt release Notes: Fastmarkets’ indium prices are produced in line with the specifications published by the Minor Metals Trade Association
Description: Gallium min 99.99% Ga Rotterdam $/kg Type: Assessed range Basis: Rotterdam Currency: USD Unit: kg Min lot size: 100kg kg (+/- 2%) Payment terms: Cash, other payment terms normalized Quality: Ga: 99.99% min, no other elements specified Form: Ingot Publication: Twice weekly. Wednesday and Friday between 2pm and 3pm London time Packaging: Packed in plastic sleeves, original producers’ cases Delivery timeframe: Prompt release Notes: Fastmarkets’ gallium prices are produced in line with the specifications published by the Minor Metals Trade Association
Description: Germanium 99.999% Ge Rotterdam $/kg Type: Assessed range Basis: Rotterdam Currency: USD Unit: kg Min lot size: 100kg (+/- 2%) Payment terms: Cash, other payment terms normalized Quality: Ga: 99.999%, no other elements specified Form: Ingot Publication: Twice-weekly. Wednesday and Friday between 2pm and 3pm London time Packaging: Packed in plastic sleeves, original producers’ cases Delivery timeframe: Prompt release Notes: Fastmarkets’ germanium prices are produced in line with the specifications published by the Minor Metals Trade Association
Description: Germanium dioxide Rotterdam $/kg Type: Assessed range Basis: Rotterdam Currency: USD Unit: kg Min lot size: 100 kg (+/- 2%) Payment terms: Cash, other payment terms normalized Quality: GeO2 99.99 % min, Ge 69 % approx Form: White powder Publication: Twice-weekly. Wednesday and Friday between 2pm and 3pm London time Packaging: Original producer cases, normally 25kg each Delivery timeframe: Prompt release Notes: Fastmarkets’ germanium prices are produced in line with the specifications published by the Minor Metals Trade Association
Fastmarkets had also considered the possibility of increasing the minimum tonnage of its other minor metals assessments published in London, but concluded it would not have the same benefit on pricing.
The goal of a minimum tonnage is to exclude any deal that, because of its small size/high price, could add bias to the Fasmarkets published price. At the same time, the minimum tonnage must be as low as possible so that the number of deals excluded is the smallest.
The increase in minimum tonnages reduces the possibility that a price assessment will be moved on the basis of a small-tonnage trade, concluded above the mainstream market. In turn, this avoids introducing volatility which is not in fact present in the market as a whole. Fastmarkets will continue to use its expert judgement to exclude data that it considers to be an outlier, as set out in Fastmarkets’ price methodology document.
When volume information is available, it is taken into consideration in the assessment process. For instance, typically a deal with a bigger volume will carry more weight in the price reporter’s judgement than a smaller volume transaction. However, price reporters will also consider, for instance, to normalize or discard a price reported for a deal with an abnormally large or small volume.
All historical data relating to these prices prior to the amendment will remain available in the pricing section of the Fastmarkets website.
To provide feedback on this price or if you would like to provide price information by becoming a data submitter to these prices contact Cristina Belda by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Cristina Belda, RE: Minor metals minimum tonnages”.
See all of Fastmarkets’ pricing methodology and specification documents here: https://www.metalbulletin.com/prices/pricing-methodology.html