Platts, part of S&P Global Commodity Insights, is proposing to update the specifications for its Global Molybdenum Oxide Daily Dealer assessment, effective Feb. 20.
The proposal follows an open consultation, with feedback invited in a subscriber note published Dec. 2.
Following initial market feedback, Platts is proposing the following specification changes:
- 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.
- India duties: Normalizing indications reported on a CIF Nhava Sheva/Mumbai basis to duty-free material.
- Product specifications: Reflecting material in 1mt bags, from drummed material currently.
- Payment terms: Introducing a cash-against-documents payment term specification, with scope for other payment terms to be normalized to cash against documents.
Under this proposal, the incoterm and location bases reflected in the assessment would be as follows:
- In-warehouse Rotterdam
- In bonded warehouse Tianjin
- In-warehouse Busan
- In-warehouse US
- CIF India
- CIF Japan
The proposed changes would serve to better reflect trading activity and would allow for more granular normalization of premium markets.
Platts is additionally proposing to apply a 4:30 pm London time stamp to all daily assessments, ending the current practice of early market close at 1 pm London time on the last working day of the calendar month.
The assessment would continue to take into account all information reported to Platts in the 24-hour period up to 4:30 pm London time each day.
Full specifications are outlined below:
Current Specifications
Proposed Specifications
Assessment
Molybdenum Oxide Daily Dealer (Global)
Molybdenum Oxide Daily Dealer (Global)
Monthly average
MMAYQ03
MMAYQ03
Type
Assessment
Assessment
Assessment timestamp
4:30 pm London time daily, 1 pm London time at month-end
4:30 pm London daily
Incoterms and location
IW European ports, in bonded warehouse Tianjin, DDU South Korean ports, Delivered US, CIF Nhava Sheva/Mumbai, CIF Japan
IW Rotterdam, in bonded warehouse Tianjin, IW Busan, IW US, CIF Nhava Sheva/Mumbai (duty-free), CIF Japan
Product specifications
Min 57% Mo, max 0.5% Cu, 0.05% Pb, drummed material
Min 57% Mo, max 0.5% Cu, 0.05% Pb, material in 1mt bags
Timing
Delivery or release within 3-30 days
Delivery or release within 3-30 days
Payment
N/A
Cash against documents
UOM
$/lb mo contained
$/lb mo contained
The proposed specifications would 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.
Platts invites feedback on this proposal to EMEAMetalsTeam@spglobal.com and pricegroup@spglobal.com by Jan. 12.
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.