PRICING NOTICE: Launch of manganese ore China port stocks indices

Fastmarkets will launch two new manganese ore China port indices on a free-on-truck (fot) basis on Friday January 11.

The new indices will be based on ores with manganese ore content of 37% and 44%, respectively.

Based on market feedback after a one-month consultation period, Fastmarkets will launch the new indices to better reflect conditions in the Chinese market. China is the world’s biggest buyer of manganese ore globally, and currently accounts for 60-70% of all seaborne trades.

While the global supply of manganese ore has increased, China retains its position as the biggest consumer, to meet demand from its new and upcoming ferro-alloy smelters. As a result, manganese ore trading in the Chinese domestic markets has also surged, intensifying the liquidity in Chinese manganese ore port prices, making them more reactive to changes in demand and supply.

Domestic Chinese port indices for manganese ores will complement Fastmarkets’ existing manganese ore indices for 37% and 44% Mn, cif Tianjin.

These four indices will provide market participants with a comprehensive view of both the domestic Chinese market and the China-bound seaborne manganese ore market.

Based on feedback to the proposal dated December 5, 2018, the specifications for the 37% manganese ore China port index will be:

Price: 37% Manganese ore China port index
Manganese: Base 37%, Range 35-39%
Iron: Base 5%, Maximum 10%
Silica: Base 5.5%, Maximum 12%
Phosphorus: Base 0.025%, Maximum 0.16%   
Alumina: Base 0.2%, Maximum 2%
Moisture: Base 4%, Maximum 12%
Unit: Yuan per dry metric tonne unit (dmtu)
Granularity: 5.5-75.0mm
Form: Lump
Quantity: Minimum 1,000 tonnes
Payment method: Cash or equivalent
Delivery port: Tianjin – normalized for any Chinese mainland sea port
Delivery window: Immediate
Publication: Weekly, Friday, 3pm London time

Based on feedback to the proposal dated December 5, 2018, the specifications for the 44% manganese ore China port index will be:

Price: 44% Manganese ore China port index
Manganese: Base 44%, Range 42-48%
Iron: Base 5%, Maximum 16%
Silica: Base 11%, Maximum 12%
Phosphorus: Base 0.10%, Maximum 0.16%
Alumina: Base 5%, Maximum 14%
Moisture: Base 4%, Maximum 12%
Unit: Yuan per dry metric tonne unit (dmtu)
Granularity: 5.5-75.0mm
Form: Lump
Quantity: Minimum 1,000 tonnes
Payment method: Cash or equivalent
Delivery port: Tianjin – normalized for any Chinese mainland sea port
Delivery window: Immediate
Publication: Weekly, Friday, 3pm London time.

These indices have similar specifications to those for cif material to facilitate price comparisons among them.

Fastmarkets’ index methodology screens outliers and applies a quantity weighted model and a balanced weighting between market sides to ensure that the manganese ore China port indices are the most robust in the industry.

Fastmarkets has no financial interest in the level or direction of the index.

To provide feedback on these manganese ore China port indices, or if you would like to provide price information by becoming a data submitter to these indices, please contact Karen Ng by email at: pricing@fastmarkets.com. Please add the subject heading FAO: Karen Ng, re: Manganese ore China port index.

To see all Fastmarkets’ pricing methodology and specification documents, go to https://www.metalbulletin.com/prices/pricing-methodology.html
 

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