The prices proposed for delisting are the following:
MB-FA-0001 Frac sand, northern white, 20/40 mesh, API,
exw Wisconsin, $ per short ton
Quality: 20/40
mesh
Quantity: Min 100 short
tons
Location: Ex-works
Wisconsin
Timing: Spot
Unit: USD per short
ton
Payment terms: 30
days
Publication: Monthly,
third Thursday of every month by 4pm UK
Notes: Northern White
sand, API grade
MB-FA-0004 Frac sand, northern white, 30/50 mesh, API,
exw Wisconsin, $ per short ton
Quality: 30/50 mesh
Quantity: Min 100 short
tons
Location: Ex-works
Wisconsin
Timing: Spot
Unit: USD per short
ton
Payment terms: 30
days
Publication: Monthly,
third Thursday of every month by 4pm UK
Notes: Northern White
sand, API grade
MB-FA-0002 Frac sand, northern white, 40/70 mesh, API,
exw Wisconsin, $ per short ton
Quality: 40/70 mesh
Quantity: Min 100 short
tons
Location: Ex-works
Wisconsin
Timing: Spot
Unit: USD per short
ton
Payment terms: 30
days
Publication: Monthly,
third Thursday of every month by 4pm UK
Notes: Northern White
sand, API grade
MB-FA-0003 Frac sand, northern white, 100 mesh, API, exw
Wisconsin, $ per short ton
Quality: 100 mesh
Quantity: Min 100 short
tons
Location: Ex-works
Wisconsin
Timing: Spot
Unit: USD per short
ton
Payment terms: 30
days
Publication: Monthly,
third Thursday of every month by 4pm UK
Notes: Northern White
sand, API grade
Feedback from market participants suggests that
Northern White frac sand has ceased to be the most widely used
grade in the North American frac sand market.
Northern White sand, mined mostly in the US states of
Wisconsin and Minnesota, was once the benchmark grade of frac
sand due to its high strength and consistency. But in recent
years the trend has increasingly been toward finer grain frac
sand, which renders the crush strength of the grains less
important.
In addition, higher sand intensities is driving demand
for the cheapest possible sand. This has led sand buyers to
shift their purchases to other sand sources. In particular,
sand buyers in Texas are making use of the large number of sand
mines that have opened in that state since 2019.
Finally, the Covid-19 pandemic and subsequent
oil-price crash in 2020 triggered a large number of
bankruptcies and consolidation among the fracking industry,
which has severely limited the number of potential contributors
to this market.
Fastmarkets will continue to cover the oilfield market
with its barite prices, and will monitor the possibility of
resuming frac sand pricing in the future.
The consultation period for this proposed amendment
will end one month from the publication of this pricing notice,
on October 15, while the amendment will be made, subject to
market feedback, on October 18, the next working
day.
To provide feedback on the proposal to discontinue
these prices, or if you would like to provide price information
by becoming a data submitter for this sector, please contact
Davide Ghilotti by email at: pricing@fastmarkets.com.
Please add the subject heading 'FAO: Davide Ghilotti, re: frac
sand prices.’
To see all Fastmarkets’ pricing methodology and
specification documents, go to https://www.fastmarkets.com/about-us/methodology.