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An initial consultation with the market has indicated support from several large companies involved in manganese ore for a fot price.
Metal Bulletin is now opening up its consultation to the wider market.
This notice marks the start of the two-month period during which Metal Bulletin will seek feedback on the points outlined in this notice from any person active in any part of the manganese ore market supply chain.
It is not intended to review or discontinue the specification of the existing manganese ore indices, calculated by Metal Bulletin each Friday, as part of this consultation. But, if this new price launch goes ahead, the existing two manganese ore indices would formally exclude any fot data points from its calculation. This does not affect the existing manganese ore indices because fot data has typically been excluded in recent months due to a disconnect between prices within the standard spec and fot prices.
Tight supplies of manganese ore at Chinese ports and inherently different market fundamentals from seaborne market have meant big differences between fot and cif prices, facilitating the creation of an as-yet uncaptured spot market for fot China.
The intentions of this consultation are fourfold: 1. To evaluate the possibility of launching a fot index 2. To assess the feasibility of providing additional price transparency and reliable data to the fot market 3. To research and refine specifications, through regular data collection and conversations with those active in the spot market 4. To identify and develop the most appropriate methodical approach for price discovery in this market.
It is intended that Metal Bulletin’s index methodology, using a tonnage-weighted calculation of actual spot transactions normalised to a base specification, will be adopted.
All information contributed to Metal Bulletin during the consultation and trial period will be kept secure and confidential.
Timeframe The price consultation outlined above will last two months, closing on August 9, 2017.
Following the market consultation, a conclusion, including the details of any new prices to be launched by Metal Bulletin, will be announced on the following week.
To discuss the consultation and points outlined above in further detail, to organise a meeting or to contribute to Metal Bulletin’s price discovery, please contact Metal Bulletin’s pricing team at pricing@metalbulletin.com.