Proposal to amend frequency of some US base metals premiums

Fastmarkets selects the frequency of publication of a market after considering the number of data points (deals, bids, offers, deals heard and assessments) that it can reasonably expect to collect on a consistent basis over the selected period to support the price assessment process. This proposal follows preliminary discussions with the market as well as internal meetings to review relevant Fastmarkets data, which suggest a lack of spot liquidity and price volatility in recent years.

The main pricing day will continue to be Tuesdays (at 3-4pm London time), but these tin, lead and nickel premiums would be assessed once a month instead of fortnightly (tin) and weekly (lead and nickel).

The proposed new specifications are listed below, with the proposed amendment of price frequency in italics:

MB-PB-0006 Lead 99.97% ingot premium, ddp Midwest US, US cents/lb
Quality: Lead ingot of 99.97% to 99.99% purity conforming to LME specification BS EN 12659:1999, GB/T469/2005 or ASTM B29-03 (2009)
Quantity: Min 25 tonnes
Location: Delivered consumer works, US Midwest
Timing: Within 5 weeks
Unit: US cents/lb
Publication:Monthly, First Tuesday 3-4pm London time

MB-SN-0036 Tin 99.85% ingot premium, in-whs Baltimore, $/tonne
Quality: Ingot. Min 99.85% tin purity conforming to LME specification: BS EN 610:1996, max 500ppm lead, total impurities must not exceed 0.15%
Quantity: Min 20 tonnes
Location: In-warehouse Baltimore, premium on top of LME cash prices
Payment terms: Cash against documents, other payment terms normalized
Unit: USD/tonne
Publication:Monthly, First Tuesday 3-4pm London time

MB-SN-0011 Tin grade A min 99.85% ingot premium, ddp Midwest US, $/tonne
Quality: Delivered premium over cost of tin of 99.85% purity (min) conforming to BS EN 610:1996
Quantity: Min 20 tonnes
Location: DDP US
Timing: Within 4 weeks
Payment terms: 30 days, other payment terms normalizedUnit: USD/tonne
Unit: USD/tonne
Publication:Monthly, First Tuesday 3-4pm London time

MB-NI-0240 Nickel 4×4 cathode premium, delivered Midwest US, US cents/lb
Quality: 4×4 cut cathode. 99.8% minimum primary nickel conforming to LME specification: ASTM B39-79 (2013) or GB/T 6516-2010 – Ni9990 grade specification: ASTM B39-79 (2013) or GB/T 6516-2010 – Ni9990 grade
Quantity: Min 20 tonnes
Location: Delivered consumer works, US Midwest
Timing: Within 4 weeks
Payment terms: 30 days, other payment terms normalized
Unit: US cents/lb
Publication:Monthly, First Tuesday 3-4pm London time

MB-NI-0241 Nickel briquette premium, delivered Midwest US, US cents/lb
Quality: Briquette. 99.8% minimum primary nickel conforming to LME specification: ASTM B39-79 (2013) or GB/T 6516-2010 – Ni9990 grade specification: ASTM B39-79 (2013) or GB/T 6516-2010 – Ni9990 grade
Quantity: Min 20 tonnes
Location: Delivered consumer works, US Midwest
Timing: Within 4 weeks
Payment terms: 30 days, other payment terms normalized
Unit: US cents/lb
Publication:Monthly, First Tuesday 3-4pm London time

This change would also affect the timing window of the corresponding all-in tin grade A price, moving it to “within 4 weeks” from “within 2 weeks,” with the proposed amendment of price frequency in italics:

MB-SN-0012 Tin grade A min 99.85% ingot all-in price, ddp Midwest US, $/tonne
Quality: Ingot. Min 99.85% tin purity conforming to LME specification BS EN 610:1996 and ASTM grade A, max 500ppm lead
Quantity: Min 20 tonnes
Location: Delivered consumer works, US Midwest
Timing:Within 4 weeks
Payment terms: 30 days, other payment terms normalized
Unit: US cents/lb
Publication: Daily

These prices are a part of the Fastmarkets Base Metals package.

All historical data relating to the assessment prior to the amendment will remain available in the pricing section of the Fastmarkets website.

The consultation period for this proposed amendment begins on Monday December 2 and will end on Thursday January 2, with an update to this notice published on that day. Pending market feedback, the first assessments with a monthly frequency would be on Tuesday January 7.

To provide feedback on this proposal or if you would like to provide price information by becoming a data submitter to any of these prices, please contact Rae Boyadjis by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Rae Boyadjis, re: US tin, lead and nickel premiums.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets’ pricing methodology and specification documents go to https://www.fastmarkets.com/methodology.

Fastmarkets is also proposing to discontinue the MB-PB-0099 Lead 99.99% ingot premium, delivered Midwest US; the notice can be found here.