PRICING NOTICE: Extension of amendment to flake, amorphous graphite consultation to enable further market feedback

By IM Staff
Published: Tuesday, 23 April 2019

Following extensive market engagement, Fastmarkets has decided to extend the consultation period on a proposal to amend and delist some flake and amorphous graphite prices.

Fastmarkets launched a consultation on March 22 on a proposal to amend the price specifications of all grades of flake graphite, and to delist two flake graphite prices and three amorphous graphite prices. 

The proposal is based on internal consultation and contributions from market participants and has been extended to capture more market feedback.

The following prices will be affected by the changes:

The above grades will be amended as follows:

  • Graphite flake, 94%, +100 mesh, cif Europe US$ per tonne
  • Graphite flake, 94%, +80 mesh, cif Europe US$ per tonne
  • Graphite flake, 94%, -100 mesh, cif Europe US$ per tonne
  • Graphite flake, 94%, +100 mesh, fob China US$ per tonne
  • Graphite flake, 94%, +80 mesh, fob China US$ per tonne
  • Graphite flake, 94%, -100 mesh, fob China US$ per tonne

By changing the assessment from a carbon range of 94-97% to assessing solely 94% C material, the price provided will be more representative of single product materials, in line with market participants’ feedback and the need for more specificity in the pricing offer provided.

The choice of 94% C follows the understanding that this is widely considered to be the base grade in flake graphite, and where most of the liquidity can be found.

At the same time, to ensure that subscribers can access assessments for grades other than 94%, a Value-In-Use calculator (VIU) will be introduced that will allow users to estimate the equivalent price for different carbon content materials, ranging from 95% to 97%.

The VIU figure is the sum in US$ per tonne you would need to add (or subtract) for each additional (or reduced) percentage point of carbon content.

The VIU coefficients will be updated on a quarterly basis.

In consequence, Fastmarkets will be providing both an assessed price of the main base grade, and a tool to calculate the prices of other grades, starting from the base grade and based on a regularly updated premium system.

As part of this process, Fastmarkets is also proposing to delist the prices of the following two grades of flake graphite and three grades of amorphous graphite:

  • Graphite Flake, 85-87% C,+100 Mesh -80 Mesh, FCL, fob Qingdao, China [US$ per tonne]
  • Graphite Flake, 90% C, -100 Mesh, FCL, fob Qingdao, China [US$ per tonne]
  • Graphite Amorphous, 78% C, No Mesh Stated, fob China [US$ per tonne]
  • Graphite Amorphous, 80% C, -100 Mesh, fob China [US$ per tonne]
  • Graphite Amorphous, 85% C, -100 Mesh, fob China [US$ per tonne]

Based on internal assessment and feedback from the market, these grades carry little liquidity and do not serve the needs of the industry at present, compared with other, more widely traded grades.

The consultation period for this proposed amendment will end one month from the date of this pricing notice, on May 23, with changes taking place, subject to market feedback, from May 23.

To provide feedback on these prices, or if you would like to provide price information by becoming a data submitter, please contact Davide Ghilotti by email at:  pricing@indmin.com. Please add the subject heading 'FAO: Davide Ghilotti, re: graphite".



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