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

Following market feedback, Platts, part of S&P Global Commodity Insights, is to launch a weekly DDP NWE Ferrochrome Low-Carbon 0.10% carbon, 60%-64.99% chrome assessment, and will 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 will also revise volume specifications for the amended low-carbon ferrochrome 65%-70% Cr DDP NWE assessment and move the assessment publication to a single close value, discontinuing associated high and low price points, with effect from Feb. 1, 2023.

The changes were first proposed Nov. 4 in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/110422-platts-proposes-to-revise-nwe-ferrochrome-low-carbon-coverage-to-assess-60-6499-chrome-and-premium-65-70-cr-content

Platts has observed a clear pricing distinction 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 the changes, the existing low-carbon ferrochrome assessment, under the symbol code MMAIL00, will be amended to reflect 65%-70% Cr content, normalized to 67% Cr content basis.

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

Revised Specification
Current Assessment
Assessment
Ferrochrome Low-Carbon 0.10% C, 65-70% Cr DDP NWE

Ferrochrome Low-Carbon 0.10% DDP NWE

Published
Wednesdays
Wednesdays
Quantity
Min 25 mt
200-500 mt

Incoterms and location

DDP Northwest Europe
DDP Northwest Europe

Timing

Delivery within four weeks
Delivery within four weeks
Payment
Net 30 days
Net 30 days
UOM
cents/lb Cr contained
cents/lb Cr contained
Dimensions

Lump form

N/A
Specifications
65-70% Cr, 0.10% C, 0.05% Si, 0.05% P
60-70% Cr, 0.10% C, 0.05% Si, 0.05% P

Symbol Bates

Close
High, Low, and Close

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

Assessment

Ferrochrome Low-Carbon 0.10% C, 60-64.99% Cr DDP NWE
Published
Wednesdays
Quantity
Min 25 mt
Incoterms and location
DDP Northwest Europe
Timing
Delivery within four weeks
Payment
Net 30 days
UOM
cents/lb Cr contained
Dimensions
Lump form
Specifications
60-64.99% Cr, 0.10% C, 0.05% Si, 0.05% P
Symbol Bates
Close

Normalization for quality, dimensions, payment terms and cargo size will 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 new assessment will 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.

Please address any questions or comments to ferrous_emea@spglobal.com and pricegroup@platts.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.