Platts proposes daily Dealer Moly Oxide assessment (update)

After extensive consultation with the molybdenum industry, effective October 10, Platts plans to add a new daily Dealer Molybdenum Oxide price assessment to complement its existing Metals Week Dealer Molybdenum Oxide price assessment.

The weekly Dealer Oxide assessment will continue to be assessed on Thursday or closest business day if there are holidays.

The new daily assessment will provide enhanced transparency into the assessment process for dealer-to-consumer business. Trade data from the following trade hubs -- CIF Japan, in-warehouse European port and delivered US -- will remain key elements to the assessment, along with other transactions normalized to these hubs, as appropriate. The daily assessment will take into account all transactions, bids and offers reported to Platts in the 24-hour period up to 1630 London time each day, assessed as a range reflecting daily global business. Volumes will continue to be published on a weekly basis. The Platts Molybdenum Oxide Transaction Price methodology will remain unchanged.

Platts plans 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. All assessments 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. As previously announced, Platts is removing the reference to "suitable for use in Western stainless mills" from all of its molybdenum oxide price assessment methodologies, and also proposes to formalize delivery timings and order size as follows: delivery timing 3-30 days forward from date of publication, order quantities 18-24 mt. All other grades and packaging will be normalized to this standard.

Platts is continuing to seek feedback on whether the Dealer Oxide price assessment methodologies should be expanded to include dealer-to-dealer, producer-to-dealer and producer-to-consumer business, as well as whether the global assessment should include trade data CIF South Korea, CIF Nhava Sheva/Mumbai, CFR China and CFR Brazil.

Please submit feedback, comments or questions to: Andy Blamey, andy_blamey@platts.com; 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 December 31, 2011.