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.

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