PRICING NOTICE: Proposal to discontinue Northern White frac sand prices

By William Clarke
Published: Wednesday, 15 September 2021

Fastmarkets proposes to discontinue its assessmentS of the prices for Northern White frac sand due to a shift in demand which has reduced the traded volumes for these grades and this origin.

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.

 



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