Platts proposes Molybdenum Oxide Transaction price change

Platts is seeking comments on a proposal to upgrade the assessment methodology for its Molybdenum Oxide Transaction assessment (AAU0S03), effective May 3.

The focal point of the proposed upgrade is a change in the assessment's frequency from weekly to daily and a change to a single price from a price range.

Platts proposes to publish this assessment on a daily basis in Platts Metals Alert (PMA page MW0398), Metals Week daily supplements, Steel Markets Daily and Metals Week, and subsequently as a weekly average also in PMA, Steel Markets Daily and Metals Week.

The monthly Oxide Transaction average would continue to be published in PMA (page MW0665) and in Metals Week, and would be calculated as an average of the new daily assessments under this proposal.

The Market Data category will remain as FA. The assessment would remain as a measure of spot market value for a standard of technical-grade molybdenum oxide powder, min. 57% Mo, max. 0.5% Cu, 0.05% Pb, produced from roasted molybdenum concentrates, in drums.

Platts is also proposing to remove the reference to "suitable for use in Western stainless mills" from its Oxide Transaction Price methodology given that this grade has a wide variety of uses, and also proposes to formalize delivery timings and order size as follows: delivery timing 8 weeks forward from date of publication, order quantities 18-24 mt.

All other grades and packaging will be normalized to this standard.

Trade data from the following trade hubs -- CIF Japan; in-warehouse European port; delivered US; CIF South Korea port and CIF Nhava Sheva, Mumbai, India -- will remain key elements to the assessment, along with other transactions normalized to these hubs as appropriate.

Platts is also proposing to add CFR China trade data to the assessment basis, for the same grade, exclusive of VAT taxes. The scope of trades and counterparties surveyed will remain unchanged.

Data for consideration for each day's price will be gathered before 16:30 London time and the price will reflect value at this time.

The assessment dates will follow a London schedule with regard to holidays.

Tonnage levels included in the assessment will be published on a weekly basis.

The methodology for the weekly Platts Molybdenum MW Dealer Oxide assessment range will remain unchanged, though Platts proposes to amend the Dealer Oxide specification to stipulate that the assessment refers to oxide produced from roasted molybdenum concentrates, order sizes of 18-24 mt, delivered within 8 weeks, and to also remove the reference to usage by Western stainless mills.

Platts also proposes to begin publishing its existing weekly FOB China molybdenum assessment -- currently available on Platts Metals Alert -- in Metals Week.

Please submit feedback, comments or questions to Anthony Poole, anthony_poole@platts.com, Mayumi Watanabe, mayumi_watanabe@platts.com or Jitendra Gill, jitendra_gill@platts.com, with a cc to Francis Browne, francis_browne@platts. com and pricegroup@platts.com, by March 25, 2011.

Platts intends to publish a final decision on its plans by April 4.