PRICING NOTICE: Metal Bulletin will launch a European Ferro-Chrome Benchmark Indicator

On Friday March 3, Metal Bulletin will launch a weekly European Ferro-chrome Benchmark Indicator as a guide to a representative level for the European ferro-chrome quarterly benchmark.

It will be calculated weekly on Fridays and follow the same calendar as the Metal Bulletin Ferro-chrome Index.

The new price indicates a representative level for the European ferro-chrome benchmark if it were to be settled on that Friday.

It does so by using a proprietary Metal Bulletin formula based on the historical relationship between the European ferro-chrome benchmark and Metal Bulletin market data.

Historically this formula has given a very accurate guide to the benchmark price.

“The quarterly ferro-chrome benchmark still plays a huge role in the market, regardless of the questions that exist about its relationship with realised prices as a result of the discounts that have in the past been granted to buyers,” Metal Bulletin’s editorial director Alex Harrison said.

“Metal Bulletin’s indicator will be watched closely in the market, particularly as the time for settlement approaches, because it captures the relationship between the spot prices that our price reporters and analysts cover and the likely settlement price.”

Amy Bennett, principal consultant at Metal Bulletin Research, said: “Metal Bulletin’s European ferro-chrome benchmark indicator is a critical new resource for the ferro-alloys industry. We have seen extreme volatility in chrome pricing over the past two years, and the ferro-chrome indicator will be a significant asset to the industry. Metal Bulletin’s experience in creating robust indexes for the mining and metals markets was good preparation for the launch of this indicator.”

The European Ferro-chrome Benchmark Indicator was trialled at the end of 2016, ahead of the first-quarter settlement, and was seen by market participants then as a useful tool that acted as an independent guide to a fair level for the quarterly benchmark based on prevailing spot market conditions.

The new price adds to the suite of assessed and index prices, and other services, that the Metal Bulletin Group provides for the chrome market, including producers, traders, stainless steel mills and foundries.

The specification for the assessment is as follows:

Description:
European Ferro-chrome Quarterly Benchmark Indicator
Type: Ferro-chrome lumpy, basis 52% Chrome content
Price: $ per lb of Chrome content to major European destinations
Cr: 52% Chrome content

To find out more about the Ferro-chrome Benchmark Indicator, please contact index analyst Inaki Villanueva (ivillanueva@metalbulletin.com)

What to read next
Steel trading and production have come to a halt in the eastern Turkish region of Iskenderun following a devastating earthquake that hit the region on Monday February 6 and put mills in the area under force majeure, sources told Fastmarkets on Tuesday
A 120-day closure of four Illinois dams scheduled for 2023 will disrupt barge shipments and have potentially both negative and positive impacts on scrap and finished steel products from Canada to Texas
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
Electrolysis processes developed by Boston Metal and Electra that eliminate the need for coal in steel production could be key to a net-zero emissions future for the metallics industry, attendees learned at Fastmarkets’ conference on January 17-19 in Dallas
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed