Platts proposes to revise NWE Ferrochrome Low-Carbon coverage to assess 60-64.99% Chrome and premium 65-70% Cr content

Platts, part of S&P Global Commodity Insights, is proposing to launch a weekly DDP NWE Ferrochrome Low-Carbon 0.10% Carbon, 60-64.99% Chrome assessment, and to amend the existing weekly DDP NWE Ferrochrome Low-Carbon 0.10% Carbon assessment to reflect 65-70% Chrome content, from 60-70% currently, effective Feb. 1, 2023.

Platts also proposes to revise volume specifications for the amended low-carbon ferrochrome 65-70% Cr DDP NWE assessment and to move assessment publication to a single close value, discontinuing associated high and low price points, with effect from Feb. 1, 2023.

The proposed changes would serve to better reflect the clear pricing distinction noted by market participants between low-carbon ferrochrome with 60-64.99% chrome content, sourced typically from China and India, and the premium low-carbon ferrochrome with 65-70% chrome content, sourced typically from Europe and Central Asian origins.

Platts has also observed an increase in market activity for low-carbon ferrochrome with 60-64.99% chrome content DDP NWE in recent months as the Chinese domestic stainless steel market weakened, widening the discount from premium ferrochrome with a higher chrome content.

Under this proposal, the existing low-carbon ferrochrome assessment, under the symbol code MMAIL00, would be amended to reflect 65-70% Cr content, normalized to 67% Cr content basis.

Platts would also revise the quantity specification to 25 mt, from 200-500 mt currently, and would specify that the material is in lump form:

The proposed assessment specifications for low-carbon ferrochrome with chrome content 60-64.99%, normalized to 63%, are:

Normalization for quality, dimensions, payment terms and cargo size would reflect current differentials applied in the market, and locational normalization may make use of freight netbacks and freight forwards.

Information on adjacent markets may also be considered in the assessment process.

The proposed new assessment would be published alongside the existing assessment in Steel Business Briefing, Steel Markets Daily, Steel Price Report, via Platts Metals Alert on Page 9065, on Platts Dimensions Pro and in the Platts price database.

Platts invites feedback on this proposal to ferrous_emea@spglobal.com and pricegroup@platts.com by Nov. 18.

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.