Metal Bulletin is seeking market feedback on a proposal to publish an all-in price assessment for Chinese cobalt sulfate alongside its existing price assessment for cobalt sulfate, 20.5% min Co, ex-works China.
The discount/premium structure of the existing price assessment published as a $ per lb adjustment to the low end of Metal Bulletin's benchmark low-grade cobalt price assessment, launched on Wednesday May 2, reflects the common physical trading conditions of the cobalt sulfate market.
But it is understood that the publication of an all-in price assessment will provide additional value to market participants.
With this in mind, Metal Bulletin plans to launch a spot Chinese cobalt sulfate assessment on a yuan per tonne basis. This data is already being collected to calculate the existing premium/discount assessment for cobalt sulfate.
Subject to the market consultation Metal Bulletin will publish two price assessments for Chinese cobalt sulfate, namely:
The specifications, delivery terms and publication timing of the all-in China cobalt sulfate price assessment, will be as follows:
Description: China cobalt sulfate, Co 20.5% min, ex-works, yuan/tonne
Type: assessed range
Currency/unit: yuan per tonne
Quality/shape: crystal
Chemical specification: Co: 20.5% min, Ni: 0.001% max, Cu: 0.001% max, Fe: 0.001% max, Zn: 0.001% max
Lot size: one tonne
Payment terms: on bank acceptance (other payments normalized)
Delivery window: within 30 days
Publication: twice a week on Wednesday and Friday, between 2pm and 3pm London time
The specification, delivery terms and publication timing of the existing China cobalt sulfate assessment, published as an adjustment to low end of Metal Bulletin low-grade cobalt price, at 20.5% Co basis will be unchanged.
Subject to market feedback, the all-in price assessment for China cobalt sulfate will be launched on Friday July 20, 2018. On this date, historical price data will also be available in the Metal Bulletin price book dating back to March 21, 2018.
Metal Bulletin has no financial interest in the level or direction of this assessment.
In the context of growing scrutiny around the cobalt supply chain, please note that Metal Bulletin and Euromoney plc are committed to the Modern Slavery Act.
If you have any queries or feedback concerning the proposal detailed above, or would like to contribute to the price discovery process, please contact Susan Zou or Charlotte Radford by email at: pricing@metalbulletin.com. Please add the subject heading 'FAO: Susan Zou/Charlotte Radford, re: China cobalt sulfate price assessment.'
To see all Metal Bulletin's pricing methodology and specification documents go to https://www.metalbulletin.com/prices/pricing-methodology.html.