PRICING NOTICE: MB charge chrome 50% Cr index, cif Shanghai, specification and methodology

MB charge chrome 50% Cr index, cif Shanghai

MB charge chrome 50% Cr index, cif Shanghai

MB’s China import charge chrome 50% Cr index, cif Shanghai, duty unpaid, is an objective representation of the charge-chrome market, based on a tonnage weighted calculation of actual trades, which have been normalised to a base specification and location, utilising the established MB index methodology.

The index is based on actual transactions, which are reported to MB by any market participant who is conducting trades in the charge-chrome market.

MB is totally impartial, and seeks to report an open and transparent representation of the market.

MB has no financial or other interest in the level or direction of the Index.

The details listed are the base target specification. Material that differs from the base specification but falls into other grades will be normalized back to the base specification grade.

In addition, trades will be normalised for freight based on port of unloading. Trades will be adjusted for loading in regional ports other than Shanghai before normalisation for grade (if required). The freight normalisation will be based on the relevant freight route, with data supplied by a leading global freight broker.

Price US$ per lb contained Cr, cif Shanghai, duty unpaid
Chrome: basis 50% Cr, range 48-52% Cr
Carbon: base 7.0%, max 9.0%
Silicon: base 3.0%, max 6.0%
Phosphorous: max 0.03%
Sulphur: max 0.06%
Material form: lumps.
Delivery port Shanghai. Other delivery ports normalised to Shanghai
Material origin: all origins
Delivery window: within 6 weeks
Delivery method: seaborne
Payment terms: LC at sight
Publication time: Friday 1 pm London time

Data will be collected from all market participants who are engaged in conducting charge-chrome market business, and will not be restricted to a panel or selected group of price setters.

Balance
Three sub-indices will be created, based on data received from producers, traders/brokers, and consumers. The sub-indices will be based on a tonnage weighted average of the normalised (grade and freight) trade information, and the three indices combined with equal weighting to ensure that the market is fairly represented across all participants. Only the final index will be published.

All data points that fall greater than 4% away from the calculated index will be excluded, and the index recalculated to a single iteration. Outliers will be investigated, and attempts to influence the index unfairly will result in the data provider being warned or excluded.

In some cases, where prices appear out of line or anomalous, participants may be asked to provide evidence of the transaction in the form of a signed contract. Participants will have the right to decline to provide this and MB will have to right to exclude prices that cannot be substantiated.

The number of trades available for use in the Index will of course vary depending on the market conditions prevailing, but MB will seek to utilise as many trades as possible. Where insufficient transactions have taken place in the market, assessments, bids and offers from market participants may be included in the index calculation.

Data will be submitted in a secure manner by phone and email. All correspondence will be stored by Metal Bulletin. The data collection and index calculation will be auditable by a recognized and accepted third party auditor.

Notes
In the event of public holidays in the UK, the index will be published on the following working day. As a result of technical difficulties or other unforeseen problems, the index will be published from our Singapore office or New York office, as appropriate.

Metal Bulletin is the leading independent supplier of market intelligence and pricing to the global metal industries.

To comment on this specification, or methodology, or to take part in pricing, please contact Metal Bulletin editor Alex Harrison.

Email: aharrison@metalbulletin.com

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