Platts revises Global Molybdenum Oxide Daily Dealer assessment specifications

Following extensive market feedback, Platts, part of S&P Global Commodity Insights, has updated the specifications for its Global Molybdenum Oxide Daily Dealer assessment, effective Feb. 20, 2023.

The changes were first proposed Dec. 21, 2022, in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/122122-platts-proposes-to-revise-global-molybdenum-oxide-daily-dealer-assessment-specifications

The decision to implement the proposed changes was published on Jan. 23 in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/012323-platts-to-revise-global-molybdenum-oxide-daily-dealer-assessment-specifications

Platts has made the following changes to better reflect trading activity and allow for more granular normalization of premium markets:

• Incoterms: Refining incoterms prioritized for the assessment to in-warehouse (IW) and cost, insurance and freight (CIF), normalizing market information heard on a delivered or delivered duty unpaid (DDU) basis to IW.
• Locations: Narrowing Europe location specifications from European ports to Rotterdam, narrowing South Korea location specifications from South Korean ports to Busan.
• Product specifications: Reflecting material in 1 mt bags, from drummed material previously.
• Payment terms: Introducing a cash against documents payment term specification, with scope for other payment terms to be normalized to cash against documents.

Under these changes, the incoterm and location bases reflected in the assessment are as follows:

• In-warehouse Rotterdam
• In bonded warehouse Tianjin
• In-warehouse Busan
• In-warehouse US
• CIF Nhava Sheva/Mumbai
• CIF Japan

Platts also clarifies that all indications on a CIF Nhava Sheva/Mumbai basis are duty-free reflecting bids, offers and trades wherein the seller is not responsible for payment of import duties. Typically duty on a delivered basis into India is 2.5% -- effectively 2.75% when accounting for applied 10% Indian customs surcharge. Trades with origins benefiting from lower or zero import duties will be normalized down to align with the broader imported CIF Nhava Sheva/Mumbai spot market.

Platts has additionally ended the previous practice of early market close at 1 pm London time on the last working day of the calendar month. The assessment continues to take into account all information reported to Platts in the 24-hour period up to 4:30 pm London time each day.

Full updated specifications are outlined below:

The updated specifications also apply to the daily $/mt conversion published under the MMBYQ00 symbol and the MMBYQ03 monthly average.

Assessments are published on fixed page 398 of the real-time Platts Steel Alert and Platts Metals Alert, on SBB Steel Markets Daily, Platts Metals Daily, on Platts Dimensions Pro, in Platts Market Center and in the Platts price database. Please address any questions or comments to EMEAMetalsTeam@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request