Fastmarkets is proposing a shift in the frequency of its US tin premium assessments, moving from fortnightly to quarterly publication. The change, slated to take effect on , reflects what the pricing agency describes as low spot liquidity and price volatility in the market. The proposed new schedule would see the tin grade A min 99.85% ingot premium, ddp Midwest US, $/tonne assessed on the first Tuesday of January, April, July, and October, by 5pm New York time.
The decision follows a period of preliminary discussions with market participants and internal data review by Fastmarkets. The agency determines the publication frequency of its market assessments based on the consistent collection of sufficient data points – including deals, bids, offers, and assessments – to support the price assessment process. The move to quarterly assessments suggests that, in the case of this particular tin premium, the volume of transactions and price fluctuations have not consistently justified more frequent reporting.
The specific tin premium in question, identified as MB-SN-0011, measures the delivered premium over the cost of tin with a minimum purity of 99.85% conforming to BS EN 610:1996 standards. The specifications require a maximum lead content of 500ppm, total impurities not exceeding 0.15%, a minimum quantity of 20 tonnes, delivery to the Midwest US, and a timing window of within two weeks. Payment terms are normalized to 30 days, and the price is quoted in US dollars per tonne.
This price is part of Fastmarkets’ broader Base Metals package, indicating its importance within the agency’s overall coverage of the metals market. The change in assessment frequency is not an isolated event; Fastmarkets has recently been reviewing the assessment schedules for several US base metals premiums, following a month-long consultation period. The agency states that the changes are largely based on positive feedback from market participants and its own internal data analysis.
The consultation period for the proposed amendment began on , and will conclude on . Fastmarkets will consider all feedback received and, subject to that feedback, implement the change on . Market participants are encouraged to provide feedback by contacting pricing@fastmarkets.com and basemetals@fastmarkets.com, using the subject heading “re: US tin price.”
Fastmarkets has clarified that comments submitted may be treated as confidential. Any comments not explicitly marked as confidential will be made available upon request. This transparency is a standard practice for pricing agencies, allowing for scrutiny of the methodology and ensuring fairness in the assessment process.
The move to quarterly assessments for this tin premium reflects a broader trend in commodity pricing, where agencies are increasingly adapting their methodologies to reflect changing market dynamics. Reduced liquidity and volatility can make frequent price assessments less reliable, as the number of transactions providing a clear market signal diminishes. In such cases, a less frequent assessment schedule can provide a more stable and representative price indication.
While the immediate impact of this change is primarily on market participants who rely on the Fastmarkets assessment for pricing and risk management, it also highlights the challenges faced by pricing agencies in maintaining accurate and relevant benchmarks in evolving commodity markets. The consultation process is crucial, allowing those directly affected to voice their concerns and contribute to a methodology that best reflects the realities of the US tin market.
For those seeking further information on Fastmarkets’ pricing methodologies and specification documents, the agency directs interested parties to its methodology page at https://www.fastmarkets.com/methodology. This resource provides detailed information on how Fastmarkets assesses prices across a range of commodities, offering transparency into the agency’s processes.
The broader context of public consultations on market regulations and standards is also evident in other sectors. The European Commission, for example, recently launched a public consultation on the EU Emissions Trading System (ETS) and its Market Stability Reserve, while Saudi Arabia is currently seeking feedback on new insurance laws. These consultations demonstrate a growing emphasis on stakeholder engagement in the development of regulatory frameworks and pricing benchmarks.
