Fastmarkets will change the calculation basis for the China cobalt sulfate, Co 20.5% min, ex-works adjustment to the standard-grade cobalt low-end price to 100% Co basis from the current Co 20.5% basis, effective on Wednesday April 10.
In addition, Fastmarkets also will also change the name of this assessment to China cobalt sulfate, Co 20.5% min, ex-works, adjustment to standard-grade cobalt low-end price, $/lb
Fastmarkets has carried out a one-month consultation after we received feedback that cobalt market participants preferred to track and assess the dynamics and connection between the Chinese cobalt sulfate and standard-grade cobalt markets prices as an adjustment on a 100% cobalt metal basis.
The new name is as below in bold, although the specification of the assessment will not be changed and are also listed as below:
Price: China cobalt sulfate, Co 20.5% min, ex-works, adjustment to low-grade cobalt low-end price, $/lb
Dimensions: crystal, Co: 20.5% min, Ni: 0.001% max, Cu: 0.001% max, Fe: 0.001% max, Zn: 0.001% max
Unit: USD/lb
Quantity: 1 tonne
Payment terms: on bank acceptance (other payment normalized)
Timing: within 30 days
Publication: twice a week on Wednesday and Friday, between 2pm and 3pm London time
To calculate the adjustment, Fastmarkets will convert the Chinese cobalt sulfate price at 20.5% Co min basis to a full cobalt metal content price, and use the dollar sell price published by the Bank of China every Wednesday and Friday at about 3pm Shanghai time.
The new formula to calculate the adjustment is as below:
a. Fastmarkets Chinese cobalt sulfate price/1.13/forex rate/0.205/2,204.62 = China cobalt sulfate, ex-works, at 100% Co basis, $/lb
b. Fastmarkets low-end standard-grade cobalt price, $/lb
Final premium/discount, $/lb = a-b
The old formula to calculate the adjustment is:
a. China cobalt sulfate price/1.16/forex rate/2,204.62 = China cobalt sulfate, ex-works, $/lb
b. Metal Bulletin low-grade low-end price x 0.205 = Fastmarkets low-grade cobalt low-end price at Co 20.5% basis, $/lb
Final premium/discount, $/lb = a-b
All historical data
will be updated in price book by using the new calculation basis and formula.
In the context of growing scrutiny around the cobalt supply chain,
please note that Fastmarkets and Euromoney plc are committed to the Modern Slavery Act.
To provide feedback on this price or if you would like to provide price information by becoming a data submitter, please contact Susan Zou by email at:
pricing@fastmarkets.com. Please add the subject heading 'FAO: Susan Zou, re: China cobalt sulfate premium/discount.'
To see all Fastmarkets' pricing methodology and specification documents go to
https://www.metalbulletin.com/prices/pricing-methodology.html.