Proposal to amend in-whs Rotterdam chromium alumino-thermic 99% min assessment, launch 99.4% min assessmen

Fastmarkets proposes to amend the pricing methodology for its chromium alumino-thermic 99% min, in-whs Rotterdam assessment to bring it in line with the Chinese specifications currently followed by the market.

The Chinese specifications currently in use by the market have been drawn up by the Minor Metals Trade Association (MMTA).

The existing methodology adheres to Russian specifications as defined by the MMTA, but these are no longer commonly in use.

The proposed new specifications are laid out below with amendments in italics:

MB-CR-0001 Chromium alumino-thermic 99% min, in-whs Rotterdam, $/tonne
Quality: Lump conforming to MMTA Chinese. Cr 99% min, Fe 0.4% max, Si 0.3% max, Al 0.3% max, Cu 0.04% max, C 0.02% max, S 0.02% max, P 0.01% max, Pb 0.005% max, Sb 0.001% max, Sn 0.001% max, Bi 0.001% max, As 0.01% max, N 0.05% max
Quantity: Min 10 tonnes (+/-2%)
Location: In-whs Rotterdam
Timing: Prompt release
Unit: USD per tonne
Payment terms: Cash, other terms normalized
Publication: Weekly. Friday between 2pm and 3pm London time
Notes: Steel drums of uniform net weight, usually 300kg

The existing price specifications are as follows:

MB-CR-0001 Chromium alumino-thermic 99% min, in-whs Rotterdam, $/tonne
Quality: Lump conforming to MMTA Russian X99H4. Cr 99% min, Fe 0.5% max, Al 0.2% max, Si 0.2% max, C 0.03% max, S 0.02% max, Pb 0.0008% max, Cu 0.01% max, P 0.02% max, Zn 0.006% max, Sb 0.008% max, Sn 0.004% max, Bi 0.0005% max, As 0.01% max, Co 0.005% max, N 0.04% max
Quantity: Min 10 tonnes (+/-2%)
Location: In-whs Rotterdam
Timing: Prompt release
Unit: USD per tonne
Payment terms: Cash, other terms normalized
Publication: Weekly. Friday between 2pm and 3pm London time
Notes: Steel drums of uniform net weight, usually 300kg

This price is part of the Fastmarkets minor metals package.

The existing price specifications include European-origin material, which has its own specifications. But since this material is now traded less frequently on a spot basis in Rotterdam and at a higher price, market participants have noted that the inclusion of this material has led to an overly broad price range.

To better reflect the market reality, Fastmarkets proposes creating a separate European chromium price assessment that aligns with the accepted industry standard for this lower-impurity, higher-grade material.

Due to the reduced liquidity in this segment, the new price would be published monthly.

The specifications of the proposed price are laid out below:

Chromium alumino-thermic 99.4% min, in-whs Rotterdam, $/tonne
Quality: Lump or powder conforming to European standards. Cr 99.4% min, Fe 0.35% max, Al 0.10% max, Si 0.10% max, C 0.02% max, S 0.01% max, P 0.01% max, Pb 0.001% max, Cu 0.04% max, Sb 0.001% max, Sn 0.001% max, Bi 0.001% max, As 0.01% max, N 0.05% max
Quantity: Min 10 tonnes (+/-2%)
Location: In-whs Rotterdam
Timing: Prompt release
Unit: USD per tonne
Payment terms: Cash, other terms normalized
Publication: Monthly. First Friday of the month between 2pm and 3pm London time
Notes: Lump form: Steel drums of uniform net weight, usually 300kg; Powder form: Steel drums of uniform net weight, typically 250kg; Material produced via alumino-thermic reaction.

The price would be part of the Fastmarkets minor metals package.

The separation of the European specification from the current price is expected to lower the top end of the amended MB-CR-0001 chromium alumino-thermic 99% min, in-whs Rotterdam price, while liquidity will be reflected in the newly launched price.

Before this public consultation, Fastmarkets conducted an extensive outreach to assess the use of the existing price, recognizing any potential impact on contracts. But no evidence was found of this price being used in contracts.

If the anticipated change affects any known contracts, please contact us. If we find it has use in contracts, the existing assessment can be maintained temporarily to allow the contracting parties time to adjust.

The consultation period for the proposed amendment starts from Friday February 28 and will end on Monday April 28.

The amendment for MB-CR-0001 chromium alumino-thermic 99% min, in-whs Rotterdam will then take place, subject to market feedback, on Friday May 2.

The consultation period for the proposed launch of chromium alumino-thermic 99.4% min, in-whs Rotterdam starts from Friday February 28 and will end on Monday April 28.

The launch of the new price will take place, subject to market feedback, on Friday May 2.

To provide feedback on this pricing notice or if you would like to provide price information by becoming a data submitter, please contact Julienne Raboca by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Julienne Raboca, re: chromium alumino-thermic price assessment.”

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.