PRICING NOTICE: Proposal to discontinue China cobalt sulfate, exw standard-grade adjustment

Fastmarkets is proposing to discontinue the calculation and publication of its China cobalt sulfate, Co 20.5% min, ex-works, adjustment to the low-grade cobalt low-end price.

The China cobalt sulfate, exw standard-grade adjustment is calculated against Fastmarkets’ assessment of the all-in exw China cobalt sulfate price and the low end of the standard-grade cobalt price.

Fastmarkets has discovered most market participants track Fastmarkets’ all-in exw China cobalt sulfate price and standard-grade cobalt price, and calculate the adjustment themselves by using either the same formula Fastmarkets uses or a slightly different formula.

As such, most market participants do not find it necessary to use an adjustment from a third party.

Additionally, an increasing number of market participants are referring to Fastmarkets’ cobalt hydroxide payable indicator and standard-grade cobalt metal price to track the raw material prices for cobalt sulfate. Some cobalt hydroxide deals have also been linked to both assessments.

Having noted the emerging cobalt hydroxide spot market, Fastmarkets launched the cobalt hydroxide payable indicator in February 2019 to provide the market with a more accurate way to assess cobalt sulfate margins.

With these factors in mind, Fastmarkets now invites market feedback on its proposal to discontinue the cobalt sulfate 20.5% Co basis, adjustment to standard-grade cobalt low-end price, exw China. The consultation period for this proposal will end one month from the date of this pricing notice, on February 3, with the last pricing session, subject to market feedback, taking place on February 5.

To provide feedback on this proposal please contact Susan Zou by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Susan Zou re: discontinuation of cobalt sulfate adjustment.”

To see all of Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.

What to read next
Fastmarkets’ Shanghai-London arbitrage calculations for base metals were published incorrectly on Wednesday September 28 due to a reporter error,
Is the ‘green’ advantage held by steel companies in the US at risk as the market adopts a more rigorous approach to reducing Scope 3 emissions?
Spot demand for aluminium is softening and Rotterdam premiums now, at the end of September 2022, are at a nine-month low, so market participants are considering whether Europe remains an attractive destination for imports
Hydro will partially curtail aluminium production at Hydro Karmøy and Hydro Husnes in Norway, the company announced on Tuesday, September 27.
The copper market faces macro-economic-related headwinds from the turmoil currently affecting economies worldwide, multinational commodities trader Concord Resources’ research manager, Duncan Hobbs, told delegates at the Fastmarkets Copper Conference in Barcelona, Spain, this month
What does the launch of Outokumpu new sustainable stainless steel line, Circle Green, mean for the industry’s green transition?
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed