The goal of a minimum tonnage is to exclude any deal that, because of its small size or high price, could add bias to the Fastmarkets 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.
Initial consultations with market participants revealed that with the current minimum tonnage, a small number of transaction and non-transaction data is collected and assessed, but participants said the trade and non-trade data is not representative of the mainstream market.
In addition, some of the small-tonnage transactions were concluded at much higher prices, which may distort actual spot market levels, according to initial feedback.
Therefore, Fastmarkets proposes to increase the minimum tonnage of its domestic Chinese indium assessment to 50kg to better reflect the dynamics of the indium market.
All other aspects of the indium specification will remain unchanged.
The proposed specification are as follows:
Description: Indium, 99.99% ex-works China
Basis: Ex-works China
Unit: Yuan per kg
Quality: In: 99.995% min, Cu: 0.0005% max, Pb: 0.0005% max, Zn: 0.0005% max, Cd: 0.0005% max, Fe: 0.0005% max, Ti: 0.0005% max, Sn: 0.0010% max, As: 0.0005% max, Al: 0.0005% max
Form: ingot of 500 gram
Minimum tonnages size: 50kg
Payment terms: cash on spot
Publication time: Weekly, between 2pm and 3pm UK time on Wednesdays
The consultation will end one month from the date of this pricing notice on Monday March 25. Subject to market feedback, changes will take place from Wednesday March 27.
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.
To provide feedback on these assessments or if you would like to provide price information by becoming a data submitter to this assessment, please contact Amy Lv by email at pricing@fastmarkets.com. Please add the subject heading FAO: Amy Lv, re: min lot size for China’s spot indium price
To see all Fastmarkets MB’s pricing methodology and specification documents, please go to https://www.metalbulletin.com/prices/pricing-methodology.html
